chapter 15: supply chain and channel management

Question 1

how do channels create value?

Answer 1

reduce number of transactions for oems, increase value for customers, more efficient and effective

Question 2

direct vs. indirect channel

Answer 2

direct channel: manufacturer > customer
indirect channel (one intermediary): manufacturer > retailer > consumer
indirect channel (two intermediaries): manufacturer > wholesaler > retailer > customer

Question 3

independent vs. vertical systems

Answer 3

INDEPENDENT SYSTEMS
- manufacturer, wholesaler, retailer, consumer
VERTICALLY INTEGRATED
- manufacturer, wholesaler, retailer, consumer

Question 4

issues in managing channels and supply chains

Answer 4

VERTICAL CONFLICT between manufacturer and retailer 1
HORIZONTAL CONFLICT between retailer 2 and retailer 3

Question 5

power in inter-firm relations

Answer 5

POWER
- reward
- coercive
- referent
- expertise
- information
- legitimate

Question 6

developing strategic relationships with channels and supply chains

Answer 6

STRATEGIC RELATIONSHIPS
credible commitments, mutual trust, open communications, common goals, interdependence

Question 7

key trends

Answer 7

1. growth in e-commerce and its impact on retailing
2. disintermediation and re-intermediation
3. emergence of click and collect models
4. physical outlets and their evolving unity
5. emergence of third party/marketplace sellers
6. off-premise sales through third-party applications (grocery and restaurant food delivery services)
7. omni-channel marketing
8. other technological advancements