Business Model Canvas Channels - How to Build a Startup

Summary

The script explores the evolution of distribution channels, emphasizing how the delivery of products to customers has changed over time. Before the 1990s, physical channels like stores and salespeople were the primary means of distribution. However, since the mid-1990s, virtual channels such as the web, mobile, and cloud have emerged, broadening access. The key question for businesses is how they will sell and distribute their products, balancing physical and digital channels to best reach their customers.

Takeaways

• 😀 Physical distribution channels were the primary method of reaching customers before the 1990s.
• 😀 The evolution of distribution methods introduced virtual channels like the web, mobile, and cloud in the mid-1990s.
• 😀 Modern businesses must decide how they will distribute their products: through physical, virtual, or a combination of both channels.
• 😀 Distribution channels today are often hybrid, with physical stores also maintaining an online presence.
• 😀 The internet, mobile platforms, and cloud technologies have expanded the reach of businesses beyond traditional physical channels.
• 😀 The main question for any business is how their products will reach customers: physical stores, digital platforms, or both.
• 😀 The shift from physical to digital channels provides new opportunities for businesses to scale and reach larger audiences.
• 😀 Businesses today need to consider both the strengths of physical channels and the efficiencies of digital ones when distributing their products.
• 😀 Since the 1990s, there has been a significant transformation in how products are delivered to consumers, with technology driving much of this change.
• 😀 The question of distribution is fundamental to business strategy and requires careful consideration of how products will move from company to customer.

Q & A

What is the primary focus of the script?

The script primarily focuses on how distribution channels have evolved over time, highlighting the transition from physical channels to virtual channels.

What were the main distribution channels before the 1990s?

Before the 1990s, the primary distribution channels were physical, such as stores and salespeople, where products were sold directly to customers.

How did distribution channels evolve after the 1990s?

Since the mid-1990s, virtual distribution channels emerged, including the web, mobile platforms, and cloud services, which revolutionized the way products are distributed.

What are some examples of virtual distribution channels mentioned in the script?

Examples of virtual distribution channels mentioned in the script include the web, mobile platforms, and cloud services.

Why is understanding distribution channels important for businesses?

Understanding distribution channels is crucial because it helps businesses determine how to sell and distribute their products effectively, ensuring they reach the right customers.

What question should businesses ask when considering distribution channels?

Businesses should ask, 'How will I be selling and how will I be distributing my products?' to decide whether to use physical or virtual channels, or a combination of both.

How have physical distribution channels adapted to the digital age?

Most physical distribution channels now also have a web presence, enabling them to reach customers both in-store and online.

What does the script suggest about the relationship between a company and its customers?

The script suggests that the relationship between a company and its customers is influenced by the distribution channels, which determine how products are delivered from the company to the customer.

What does the script imply about the future of distribution channels?

The script implies that distribution channels will continue to evolve, with more companies integrating both physical and virtual channels to meet customer demands.

How have distribution channels become more diverse in recent decades?

Distribution channels have become more diverse due to the rise of virtual platforms, offering businesses a variety of ways to reach customers beyond traditional brick-and-mortar stores.