“New paradigm for distributors”
In the August 23, 2011 issue of Gulf News, Booz & Company Partner Gabriel Chahine and Senior Associates Faisal Sheikh and Golnaz Bahmanyar (Middle East) wrote that many Middle Eastern companies that built lucrative businesses distributing consumer goods now find themselves in need of a new strategy. Distributors have six options that they can use to redefine their business, the co-authors said, ranging from focusing on service, that is taking one activity at which they excel (perhaps logistics or marketing), and making it the core of their business model; to choosing a particular channel, such as mom-and-pop stores, and provide one-stop service to MNCs that want to reach these retailers; and building their own internal brands to address the unmet needs of the local markets. “To maintain the growth that they’ve sustained for decades, distributors need a new strategy,” the Booz & Company co-authors wrote. “They can either take a new approach, with a focus on a particular segment, or build on their existing portfolio by adding manufacturing or retail to their current business. Sustained growth requires a new strategy, and it must be acted upon quickly.”