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Describe distribution channels (direct, manufacturer to consumer, indirect, wholesalers/retailers, multichannels).

BMW uses two types of distribution channels. Their indirect distribution takes place through dealerships that are located across the United States and around the world. The dealerships are independent franchises that are incentivized by special programs and promotions. Dealerships usually make their revenue from the percentage of the final sale.

BMW’s direct distribution takes place through their website or at a dealership. Usually this takes place when the customer requires some type of customization to the vehicle or wants to go directly through BMW.

Discuss possible channel conflicts.

A possible conflict might occur when dealerships are incentivized differently from each ot