| Summary: | 碩士 === 國立政治大學 === 經營管理碩士學程(EMBA) === 99 === Small- and medium-sized enterprises (SMEs), in contrast to large multinational corporations, often lack the financial resources, exposure, and expertise in product distribution channel management. When entering a foreign market, SMEs often have to rely heavily on channel partners. Consequently, selecting the appropriate channel partners is one of the key success factors in channel management.
This study examined a medium-sized Taiwanese PC enclosure company as it sought to expand in the North American market. To this end, the company adopted an integrity-based channel management strategy and strived to become a channel champion. The internal decision-making processes for channel partner selection were outlined and the influences of the company objectives on its channel design were analyzed. Furthermore, considerations on the length, width, and density – three important factors to an efficient channel strategy – were introduced. Lastly, methods to support channel partners in the form of product training, marketing and promotional support, incentive programs, and an appropriate performance appraisal system were discussed.
To maximize channel efficiency and reduce potential conflicts between channel partners, the company employed a tiered channel strategy. Extending the geographic coverage and penetrating key select markets was achieved by carefully selecting channel partners after weighing in the quality of their downstream distribution channels and their sales volume. Revenue growth in select markets was achieved by leveraging the strengths of a few competent channel partners. These channel partners have subsequently recognized the benefits of the integrity-based channel management strategy and are more committed to fulfilling their roles within the overall auspices of the channel distribution system.
Recommendations to the company based on the research findings are the following:
1.The management should be involved and be committed to the implementation of the integrity-based channel management strategy.
2.In the face of constant changes in the business environment, channel strategy should be reviewed and revised anytime.
3.Internal training to senior management to raise their capability of channel stewardship.
4.Establish a mechanism to resolve potential conflicts between Taiwanese OEM/ODM sales team and channel partners in North America.
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