For many people today, Microsoft Windows has become a household name. Whereas branding may be a big part of their success, one cannot overlook their world class distribution system which has helped them become the leader in operating systems the world over. The recent launch of Windows 7, Microsofts latest operating system has been in the news for some time now, and thus will be used as an example for further discussion

Direct distribution Strategy
A direct distribution system is one in which the manufacturer directly interacts with the customer. In the case of Microsoft windows this can be done through online delivery systems. Current Windows users can upgrade to the newest version or just have it shipped to their location by paying online. The advantages of such a system are that information sharing is at a maximum. This in turn ensures that Microsoft can setup an effective customer service system that ensures that customers are taken care as per the agreed standard operating procedures, issues that may come to light through an indirect distribution strategy.

Indirect distribution strategy
An indirect distribution system entails the manufacturer interacting with a third party (such as the retailerwhole seller) who will then distribute it to the end customer. In the case of Windows 7, this is done through licensed distributors of the software. Any customer can just walk into any licensed seller and pick up his preferred version of the software from the shelf. The advantage of setting up an indirect system is so that the manufacturer can reach out to more customers, essentially increasing the width of its market.