global distribution system
DESCRIPTION
Global distribution systemTRANSCRIPT
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Global distribution system
By: Idris
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A Global Distribution System (GDS) is a
network operated by a company that enables automated transactions between Vendors
and booking agents in order to provision travel related services to the end consumers.
Global Distribution System
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Competitive advantage Competitive strategies
Distribution as a competitive advantage
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Something that places a company or a person above the com-petition
Competitive Advantage means
What is the Competitive Ad-
vantage?
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Differentiate a product or service
Improve business processes (lower costs)
Change a business structure
Create new business
Competitive advantage
iphone 5s gold
Iphone 6
iphone 5s gold
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Competitive Advantage
Cost advantage
DifferentiationAdvantage
Simila
r pro
duct
At lower
cost
Higher price
For unique product
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A Model of Competitive ad-
vantage
Resources
DistinctiveCompetencies
Capabilities
Cost advantageOr
Differentiation ad-vantage
ValueCre-ation
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How a firm can actually create and sustain a competitive advantage in its industry?
Competitive Advantage By
Porter
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“Competitive strategy is about being different. It means deliber-ately choosing to perform activi-ties differently or to perform dif-ferent activities than rivals to de-liver a unique mix of value.”
-- Michael Porter
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Competitive advantage strategies
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1.Cost Leadership (Low Cost Strategy) cost Leadership mean that produce goods level of
equal more in expensive
2. Differentiation (Differentiation Strategy) Differentiation is that provide inventive value can im-
prove of perceive valued of consumers toward prod-uct(or service) in the market.
3. Focus Cost Leadership / Differentiation: When competition's range is narrow, in other words
when target on specific customer segment will be fo-cused cheap price and differentiation strategy.
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Competitive Weapon -Sustainability
• Very few companies sustain their competitive edge over the long term
• Sustainability occurs when it is difficult or impossible for the competition to respond
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1. How long a competitor responds?
2. Which competitors can/will respond?
3. Will the response be effective?
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3 Pillars Supporting Sustainable Advantage
• Lead Time• Information leaks• Followers take short cuts• Followers implement better solutions
• Competitor Analysis (Difficulty of competitor to respond or copy
application)
• Supply system analysis• Market capture• Switching costs
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GLOBAL LOGISTICS – the transportation & storage activities necessary to transfer the
physical product from the manufacturing plants & warehouses in different countries to various
local market countries
Nowadays, global distribution has been consolidated such that fully integrated
transportation from point to point across the world is possible at low cost.
Global Logistics
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Elements of International Logistics
• The environment in which international logisticians operate is quite different from the domestic environment.
• The decisions regarding international transportation are much more complicated than domestic transportation.
• The number of intermediaries involved is greater.
• The inherent risks and hazards of international transportation are much more significant.
• International insurance is much more complex.
• International means of payment are more complicated.
• Terms of trade are more complicated.
• The crossing of borders represents specific challenges.
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Global Logistics
Air Express Technical innovations in computerized
inventory systems and numerically controlled machines for good handling made possible the growth of air express systems
Ocean Carriers For shipments of bulky and low-value-per-
unit products Ocean vessels are still the most economical
carrier alternative overseas There have been a number of global carrier
alliances in the shipping industry due to the savings involved in sharing resources and the advantage in providing integrated one-stop services to the shipper
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Global Logistics
Overland Transportation The increasing volume of international trade has put
the inland distribution system under pressure One North American solution has been the roll-on-roll-
off system in which a loaded container is simply rolled onto a railcar and shipped by rail for part of the way, avoiding congested freeways
Warehousing The competitive need on the part of global
companies to be “close to the customer” and provide fast and efficient service This places increased demand on warehousing and
inventory management NABARD Warehousing Scheme (NWS) 2013- 14
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GRAY TRADE - parallel distribution on genuine goods by intermediaries other than authorized
channel members
Three main factors motivate entrepreneurs to engage in gray trade:
1. Wide price discrepancies between national markets
2. Limited availability of certain models or versions in one market
3. Inexpensive logistics means that transportation can be accomplished with relative ease
Parallel Distribution & Gray Trade
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EROSION OF BRAND EQUITYcan happen if the gray goods do not perform to the
level expected
STRAINED RELATIONSHIPS WITH AUTHORIZED CHANNEL MEMBERS
arises when channel members face intra-brand competition
LEGAL LIABILITIES usually involves warranties that can’t be honored
COMPLICATION OF GLOBAL MARKETING STRATEGIES
forecasted sales in a market may not be realized when
there is a sudden influx of gray goods
Effects of Gray Trade
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What type of channel/middlemen should be used to ensure that the strategic marketing objectives
are met in that country?
What are the important functions in the channel network for that country?
Global Channel Design
Two major considerations:
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REVISIT YOUR FSA’S Key success factors and FSA’s vary across countries and
across channels
WHAT CHANNELS ARE AVAILABLE?Once you identify the critical features of your channel
network, find out if the country market possesses these channels
CHANNEL TIE-UPChannel members might be difficult to enlist due to entry
barriers, competition, and special trade allowances
COORDINATION & CONTROLOnce a distribution network is established, coordination & control from a centralized headquarters should be feasible
Designing Global Channels