Question

Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek the dealers out regardless of where they are. there are approximately 50 caterpillar dealers in the united statesââone in each state. from this information, you can surmise that caterpillar uses _____ distribution.

Answer 1

The caterpillar which is the manufacturer of tractors and other earthmoving equipment uses an exclusive distribution based from their given information. Exclusive distribution is the utmost obstructive form of distribution which involves forming one or a few dealers contained by a given geographic area, because buyers are eager to search or travel to get the product. This method of distribution is inadequate to consumer specialty goods, a rare shopping goods and most important industrial equipment. The legality of an exclusive distribution agreement can be different depending on the information of the case. In some case in point such agreements are totally legal while in others the competitors can make legal challenges.