Types of Organizational Strategies

May 29th, 2015
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MATERIALS AND PARTS • Raw materials ( natural gas, HDPE etc.) • Manufactured materials ( copper wire, steel sheets ) • Component parts ( switches, motors or customized gears ) Characteristics: Normally large custom made orders are sold by theManufacturers& standard products by industrial Distributors

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1PI11MBA021. What are the different types of industrial products. [may/june 2010]Classification of industrial products is done into 3 Groups shown below.MATERIALS AND PARTS Raw materials ( natural gas, HDPE etc.) Manufactured materials ( copper wire, steel sheets ) Component parts ( switches, motors or customized gears )Characteristics: Normally large custom made orders are sold by the Manufacturers & standard products by industrial DistributorsCAPITAL ITEMS Installations (buildings, computers, machinery etc.) Accessories (PC, Office furniture)Characteristics: Normally major installations, because of extensive interactionrequired and long negotiation time required, the manufacturers deal directly with the customer & accessories are sold by industrial distributors.SUPPLIES AND SERVICES Supplies (soaps, stationery etc.) Services (maintenance, canteen etc.)Characteristics: Normally industrial distributors are used & services are provided by the individual contractors).Implications for different types of products:i. For Materials & Parts, Direct selling is done to large OEMs (Original Equipment Manufacturers) and users, but indirect selling through industrial distributors / dealers becomes cost effective for smaller volume OEMs and users.ii. For Capital items, Direct selling through company sales force is common, with extensive interactions on technical & commercial factors.iii. For Supplies Industrial distributors / dealers are mostly u

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