Abstract

Selection and management of distribution channels are not only part of management functions and daily
operation of multinational corporations (MNCs), but also important compositions of core capability and
competitive advantages. This paper first analyzes Komatsu, a well-known Japanese company’s strategy of
distribution channel of excavators in China from the perspective of distribution channel intensity, then it
discusses market function positioning of Komatsu’s distributors and Komatsu’s control of its distribution
channels. Thirdly the paper summarizes characteristics of Komatsu’s distribution channels and conduct
theoretical thinking on the strategy of distribution channels of MNCs. Finally it suggests that Chinese enterprises
learn from the successful experience of Komatsu.

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