Stihl Hosts “Distribution Trap” Author
Stihl Inc. recently welcomed Dr. Andrew Thomas, author of The Distribution Trap: Keeping Your Innovations from Becoming Commodities, to its Virginia Beach headquarters. Thomas took part in a discussion with Stihl President Fred Whyte on the recent release of the book, which features a chapter examining Stihl’s dealer-only distribution strategy.
Nearly 50 Stihl managers and other guests from the local community were present to listen to why Stihl chooses not to sell to big-box stores, such as The Home Depot or Lowe’s. Both men agree that manufacturers who choose to sell to so-called “megas” often face weakened product control that can hinder quality and innovation. Whyte also discussed Stihl’s stance on selling solely through independent servicing dealers and the benefits this practice has to consumers, such as the ability to educate customers on safety procedures and equipment.
“The story of Stihl is a story of invention, creativity, and quality coupled with service, loyalty, and vision,” said Thomas in his book. “It is the last of these, a remarkable clarity of vision, that has kept the firm out of the distribution trap.” He also made a point to mention that he has received no funding from Stihl for his work. Thomas also revealed he and his co-author’s interests were piqued after reading an article in the Wall Street Journal headlined “Too Good for Lowe’s and Home Depot?,” which discussed the decision to stay away from big-box store sales.
No Comments on "Stihl Hosts “Distribution Trap” Author"