CFA Level I · CFA Level I Exam · Business Models
A manufacturer sells through independent retailers rather than directly to consumers. The business model feature that this choice most directly describes is its:
This describes the firm's channel strategy. Selling through independent retailers instead of directly is a decision about how products reach customers, which is a distinct business model element from pricing or how the firm is financed.
- Apricing and revenue model
- Bchannel strategyCorrect
- Ccapital structure
Explanation
How a firm reaches customers, whether through direct sales or intermediaries, is its channel (distribution) strategy. Pricing concerns how revenue is earned, and capital structure concerns financing.
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