Comparative Analysis For Distribution Channels Of Komatsu & Caterpillar In China's Market

Distribution channel strategy is one of the most challenging and difficult components of an international marketing program. The purpose and main problem of this thesis is to describe and explain the different distribution channels, by which two global competitors: Komatsu and Caterpillar launched their new battle in China's market. The starting point in selecting the most effective distribution channel arrangement is a clear determination of the operation target and a determination of the needs and preferences of the target market, The thesis analyzes the main operation targets of the Japanese and the American giants that caused those diversities.Komatsu as an industrial product company, its marketing channel in china is a combination of three basic elements: the manufacturer's sales force, distributors and a trading company-SUMITOMO. CAT's distribution channel "partners-like dealers" provides CAT with a key competitive edge globally. There is a strong relationship between manufacturer and his fourforeign distributors in China's market.Provided China's access to WTO drives the domestic construction equipment competition even more intense, Chinese local construction equipment manufacturers will be in a more unfavorable competitive position especially in terms of distribution channels. Concerning the significance of this industry for china's modernization the thesis suggests that Chinese manufactures develop distribution system to the core comparative advantage by focusing on the customers' needs. More attention is recommend to be paid to information flow by the thesis in order to resolve the worsen credit system of china's market due to both natural and government-induced market imperfection.Information of the thesis has been gathered mainly through fieldwork using a combination of qualitative and quantitative research, including more than 30 hours interviewing. Data has been collected from internal source and on-line information to form own elaboration and evaluation.