Journal of Management Research

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Channel Structure and Strategic Choice in Distribution Channels


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1 Director of Graduate Programs University of Alabama in Huntsville Huntsville, AL 35801, United States
     

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Though marketing in general has adopted a strategic orientation, little attention has been given to strategy choices within distribution channels. The importance of marketing channel strategy decisions is highlighted by 1) their inherent long-term consequences and 2) the constraints and opportunities that they represent. The present paper incorporates strategic management theory into marketing channels literatures to examine the impact of different channel structures on the choice of a generic channels strategy. Specifically, the contingent effects of channel power/control and the degree of vertical integration are examined as they affect the choice between the generic strategies of overall cost- leadership, differentiation, focus, and combination strategies. Propositions are developed to stimulate interest in this area.

Keywords

Distribution Channels, Strategic Choice, Competitive Strategy
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  • Channel Structure and Strategic Choice in Distribution Channels

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Authors

Brent M. Wren
Director of Graduate Programs University of Alabama in Huntsville Huntsville, AL 35801, United States

Abstract


Though marketing in general has adopted a strategic orientation, little attention has been given to strategy choices within distribution channels. The importance of marketing channel strategy decisions is highlighted by 1) their inherent long-term consequences and 2) the constraints and opportunities that they represent. The present paper incorporates strategic management theory into marketing channels literatures to examine the impact of different channel structures on the choice of a generic channels strategy. Specifically, the contingent effects of channel power/control and the degree of vertical integration are examined as they affect the choice between the generic strategies of overall cost- leadership, differentiation, focus, and combination strategies. Propositions are developed to stimulate interest in this area.

Keywords


Distribution Channels, Strategic Choice, Competitive Strategy

References