Why might a manufacturer struggle to find suitable intermediaries?

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A manufacturer might struggle to find suitable intermediaries particularly due to market saturation. When a market becomes saturated, it means that there are many products available to consumers, and the available retailers or distributors may already be overwhelmed with inventory. This oversupply can lead to intermediaries being selective about which products they carry, as they aim to prioritize items that will sell well and provide a higher return on investment.

In a saturated market, existing intermediaries might be loyal to established manufacturers who have already gained a strong foothold, making it difficult for newcomers or different products to enter. This level of competition and commitment on the part of intermediaries can limit options for manufacturers who are trying to establish new partnerships to distribute their products. In such scenarios, the manufacturer’s challenge lies in demonstrating the unique value or selling proposition of their product to convince intermediaries to take on their offerings amidst a plethora of existing alternatives.

The other options, while relevant to different situations, do not address the specific challenge of finding intermediaries as directly as market saturation does. High product demand could make intermediaries more willing to collaborate, while too many competitor options could potentially create a different type of competitive dynamic. Additionally, introducing new products might create opportunities for intermediaries to carry fresh offerings rather than hind

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