Second Tier Market

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The number one concern with Americans this election year is the economy. (CNN, 2012) Between rising unemployment rates, and declining businesses people around the world are feeling the economic pinch. It has caused politicians to shout about reform, growth and stimulus packages. Meanwhile businesses are scrambling to find different way to reduce costs and to ensure that their company is still viable. Besides all of the norms of laying off people, outsourcing, closing factories, downsizing, companies have really begun to develop and manage their supply chains. Realizing that most of a company’s cost it their supply chain, companies have been really scrutinizing their supply chain, to make it as stream lined and efficient as possible. One way that companies have found a way to reduce costs in a supply chain is through second tier marketing.

Second tier marketing is basically an answer to the economic slump. Primary markets are reefing to major cities such as Chicago, L.A., New York which gather international shipments, and then package them to be shipped throughout the United States. These sites have virtually monopolized the distribution system for decades, which allows for charging companies premium process to have products shipped to those sites. (Sowinski, August) Meanwhile a second tier market would be considered another city that has the ability to quickly move products throughout the United States. An example would be Indianapolis; it is a city that is beginning to become a viable hub for companies. It has become the second-largest FedEx hub in the world, it has four major interstates, and a gateway for Europe’s largest air cargo carrier. (Sowinski, August) Though Indianapolis is not as glamorous as say New York, but products that do arrive to Indianapolis is able to be moved throughout the country quickly.

Like with any new idea there are advantages and disadvantages that must be looked at carefully before any company would try a new...
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