July 18, 2008

: An Investigation on the Most Efficient Channeling Strategy for Firms




            This study proposes to explore the positive and negative effects of different distribution channeling strategies. The continuous evolution in income distribution, consumption patterns and legal and political systems necessitates new channeling strategies which will meet both firm's and customers' needs. As new market opportunities arise, the firms must be flexible enough to adapt to the ever-changing market and consumer behaviour. Thus, there is a need to provide such firms with an array if choices on channeling strategies that they can utilize in order to achieve a competitive advantage. The results that will be acquired in this study may prove that the best channeling strategy for firms are those that are flexible in nature or can be customized. This will have significant contribution on choosing the most appropriate channeling strategies for firms that would maximize their revenue and reduce costs. 

This paper will provide the firms the choice of which channeling strategy is of 'best fit' to their corporate goals and objectives. The general objective of this research is to weigh the pros and cons of different channeling strategies. The primary question would be: What is the most effective channeling strategy that a firm could adapt in order to sustain organizational performance at par from its competitor? Data will be gathered through surveys, open-ended questionnaires and structured interviews as well as archival and numerical data. This study will be exploratory and descriptive in nature. The data gathered will be analyzed be determining the corresponding frequency, percentage and weighted mean.

Statement of the Problem

            The problem that will be addressed in this dissertation begins with the process of comparing the advantages and disadvantages of using particular channeling strategies to arrive at deciding the most efficient strategy for firms. The study will answer the following specific question:

  • What are the similarities and differences of different channeling strategies presented?
  • What are the benefits and downwards of using the different channeling strategies?
  • What are the possible challenges that the firm could encounter in adapting channeling strategies?
  • How would the adaption of a particular channeling strategy improve the overall performance of the firms?

Research Aims and Objectives

            The main aim of this study is to identify the best channeling strategy a firm could decide to adapt. The study will address three key objectives:

  • To determine the most efficient channeling strategy that the firms could effectively used to gain a competitive advantage
  • To compare the channeling strategies based on their benefits and costs and shared characteristics
  • To identify challenges in adaption and implementation of preferred channeling strategies

Scope and Limitation

            This study will concentrate on the characteristics, features and applications of each channeling strategy presented. In particular, the aspects of each channeling strategies direct and indirect effect and influence on the overall performance – physically and financially – of the firms will be included. This study will give light to the distinctness of each channeling strategy. However, the researcher will limit the scope of the study into the general channeling strategies that could be applied. Channel management and channel implementation costing will be   excluded.

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