13. In order to minimize these problems every company before making any channel change should make proper analysis and then opt appropriate strategies .so as to minimize the participants conflicts that may arise during channel change ,channel conflict strategy matrix is developed.6 March 2011 SMACKS
14.
15. Channel power:a measure of how much worth the channeladds for the customer, beyond what the manufacturer provides. 6 March 2011 SMACKS
16. Channels controls customers Market power Suppliers controls costomers insignificant significant Channel value added 6 March 2011 SMACKS
17. Four types of strategies Compete Forward integrate Lead cooperate 6 March 2011 SMACKS
18. compete When market power rests with suppliers. Channel value is low. Example:Airline E-commerce business. 6 March 2011 SMACKS
19. Forward integrate When market power is with the traditional channels Channel value is low. The suppliers should consider invading the channel to increase its capacity for value creation. Example:Dell computers SMACKS 6 March 2011
20.
21. But market power is low. The supplier must take the lead so that channel achieve its aim. example 6 March 2011 SMACKS
22. cooperate When channel value is high, Market power is also high, Channel players see themselves as equal to the supplier. Example : 6 March 2011 SMACKS
23. conclusion From the case study we conclude that before applying any channel conflict strategy the company should proper analyze conflicts and their relative weights and also the opportunities in the environment by considering market power and channel value.company can also opt a mix of one or more strategies. 6 March 2011 SMACKS
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