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Direct-to-consumer sales can drive stronger brand loyalty and customer retention. [2] The main risks in the online Direct-to-consumer are expanding liability risk, cyber risk, and more supply chain demands. DTC exposes a business to tasks that would otherwise be taken up by wholesalers and retailers, such as shipping, labelling, and cybersecurity.
Sales outsourcing can also be used as a market entry strategy and avoids permanent establishment risk. The sales outsourcing is gaining popularity among the startups in venturing into a new market. The primary reason being the increasing number of technology based startups around the globe where no physical product is involved.
Place is defined as the "direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics, and order fulfillment". Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets.
Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Whereas, the first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, the diversification usually requires a company to acquire new skills and knowledge in product development as well as new insights into market ...
The Indirect approach is a military strategy described and chronicled by B. H. Liddell Hart after World War I. It was an attempt to find a solution to the problem of high casualty rates in conflict zones with high force to space ratios, such as the Western Front on which he served.