Effective Distribution Methods for Intel China: A Marketing and Strategy Analysis

Running head: MARKETING AND STRATEGY 1
Marketing and Strategy
Student Name
Institution Affiliation

MARKETING AND STRATEGY 2
Question 1
Effective distribution is the key factor behind demand generation and success in the
Chinese markets. Establishing a healthy balance between the broad mix of distribution among
local original equipment manufacturers, MNCs, and distributors are the main approaches that
would enable Intel China boost its expansion in the market; failure to which would derail its
growth and competitiveness (David, 2011). Distribution is among the leading challenges that
Intel faces in its attempt to sell its products to Asia and other global economies. This part
proposes the most appropriate distribution methods that would help Intel in addressing the
competitive threats from AMD and actualizing the market opportunities in both short run and
long run.
Business to consumer techniques (B2C Services): From the case, Intel’s channel of
distribution consisted of approximately 30 sub-distributors based in China who sold the
company’s products to the resellers who in turn sold the Intel PC Processors to the target
customers. This is a great challenge and offers Intel the threat of losing reliable markets,
prolonged processes of offering products as demanded by customers, and also possibility of loss
of the products while in the hands of middlemen. The use of B2C services by Intel would help
eliminate this prolonged process of offering the demanded product to the end users by
eliminating all these intermediaries who contribute to increased distribution costs (Jiang, Jun, &
Yang, 2016). B2C services would eliminate the reliance on sub-distributors network hence
exploit all market opportunities and eliminate all related threats to the use of middlemen. As a
result, both short run and long run goals of Intel would be achieved.

MARKETING AND STRATEGY 3
Online distribution channels: Today, technology has taken the lead in all sectors. There is
no doubt that over 95 percent of the customers targeted by Intel are connected to and use the
internet on a day to day basis (Tim Jackson, 1997). The fact that the company already uses
internet to eliminate middlemen, not all customers have the access to the internet. In this regard,
Intel China needs to introduce advanced techniques in demand planning, logistics networking,
and inventory management in order to meet more markets in both short run and long run.
Mergers and acquisitions: Intel China is known to sell its own brands of PCs to the
Chinese markets. Due to stiff competition from AMD and other companies in the Chinese
market, Intel needs to merge and acquire more companies in the country in order to increase
brand awareness across the market. For example, Lenovo’s acquisition of IBM’s PC division in
2004 contributed to 30 percent increase of the Chinese market. Intel China needs to copy
Lenovo; by this doing the company would hence strengthen its distribution channels. The
original brand sales would also increase in the market and thus increase Intel’s profitability
which would help in meeting the long run objective of profit maximization.
Question 2
The recommended distribution methods to Jon Antonne include:
i. Business to Consumer (B2C) services
ii. Online distribution channels/ Internet
iii. Mergers and acquisitions (M&As)
These distribution methods relate to market share, revenue, and profit in China for Intel in
various ways, these ways include: