Can the Manufacturer Sustain intensive distribution? (Supply-Side Channel Analysis)
Even this strategy has its limits. It is tempting for a manufacturer with a sought after brand to overproduce and then load up channel members with more product than they can sell(channel stuffing). Inevitably, the brand ends up in too many place and too many different types of places. The brand's positioning becomes unclear. Downstream channel members slash prices to move stock. Ultimately, the brand dilutes its equity, which can topple the heads of companies.