- Several sectors are concentrated, others are rapidly consolidating and some sectors are fragmented or highly fragmented.
- Key factors for profitability include: merchandising skill, efficiencies, strong inventory management.
- There is frequent competition from the manufacturers, who often bypass wholesalers.
- Some sectors are highly cyclical, or are volatile due to their narrow customer focus.
- Specialization can help, but it also can be a two edged sword.
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- The leadership team and their people plans are the most crucial strategies for long term success. This includes the Succession Plans for leaders.
- Offering additional services can be a benefit that solidifies relationships with customers.
- Continued consolidation of the customers and participants in this industry are expected.
- Avoid the pitfall of Personal Goodwill by advance planning for your exit.
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