Abstract:

During the last decades, the producers' power in relation to the distributors has been weakened, and a further shift in the balance of power between the two can be foreseen. An interesting problem is therefore what producers can do to improve their position in relation to the distributors. This paper deals with such producer strategies towards powerful distributors. It is based on a theoretical analysis, though influenced by a research project concerning distributors' assortment decision making. A number of producer strategies is identified and discussed. The producer could fight the distributor either by himself or with the help from others. He can apply offensive or defensive strategies. He can try to manipulate goals, internal resources or external resources. This paper does not result in any radically new producer strategies and it does not suggest any strategies to the suppliers. Rather, it gives a general discussion of all conceivable strategies.