Changing distribution towards a multiple channel structure : based on the CyberTech case study

Abstract

In this master thesis the subject of multichannel distribution is addressed. Distribution is a crucial part of a company's business model and should link up perfectly with the business environment. Due to growing customer expectations, disappearing borders and stronger competition companies are challenged to adjust their distribution channels to remain viable. Applying multiple distribution channels is an increasingly popular reply to this situation and it even seems that a well developed multichannel distribution strategy can provide companies with a strong competitive advantage. At the same time, companies act reserved when it concerns changing their distribution strategy to such a structure.<br />This might have to do with the research gap regarding the multichannel topic. In this thesis, the limited available knowledge is gathered. It shows that even though no frameworks or methods to select a suitable multichannel structure exist, by paying attention to initial issues like customer segmentation, setting distribution objectives and -tasks but also to possible consequences like channel conflict, a proper structure can be devised. It should be considered properly if the channels are supposed to be complementary to each other by all approaching different (sub-) markets, or if they are set up in competition with each other. It is emphasized that it pays off for companies to carefully take notice of changes in the business environment in order to be able to timely adjust the distribution strategy and to accept that optimizing the distribution strategy as an ongoing process.