Journal of Management Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Channel Structure and Strategic Choice in Distribution Channels


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

   Subscribe/Renew Journal


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
User
Notifications

  • Anderson, Paul F. (1982), Marketing, Strategic Planning and the Theory of the Firm, Journal of Marketing, 46(Spring): 15-26.

  • Bucklin, Louis (1973), A Theory of Channel Control, Journal of Marketing, 37(January): 39-47.

  • Day, George S. and Wensley (1983), Marketing Theory with a Strategic Orientation, Journal of Marketing, 47(Fall): 79-89.

  • Dwyer, Robert F. and Sejo Oh (1988), A Transaction Cost Perspective on Vertical Contractual Structure and Interchannel Competitive Strategies, Journal of Marketing, 52(April): 21-34.

  • and (1987), Output Sector Munificence Efforts on the Internal Political Economy of Marketing Channels, Journal of Marketing Research, 24(November): 347-58.

  • and Welsh, M. Ann (1985), Environmental Relationships of the Internal Political Economy of Marketing Channels, Journal of Marketing Research, 22(November): 397-414.

  • Frazier, Gary L. and Summers, John D. (1986), Interfirm Influence Strategies and Their Application Within Distribution Channels, Journal of Marketing, 48(Summer): 43-55.

  • Gaski, John F. (1984), The Theory of Power and Conflict in Channels of Distribution, Journal of Marketing, 48(Summer): 9-29.

  • Gluck, Frederick, Kaufman, Stephen P. and Walleck, A. Steven (1980), Strategic Management for Competitive Advantage, Harvard Business Review, 58(July-August): 154-61.

  • Hall, W. K. (1980), Survival Strategies in a Hostile Environment, Harvard Business Review, 58(5): 75-85.

  • Hambrick, Donald (1983), High Profit Strategies in Mature Goods Industries: A Contingency Approach, Academy of Management Journal, 26(4): 687-707.

  • Heide, Jan B. and John, George (1988), The Role of Dependence Balancing in Safeguarding Transaction-Specific Assets in Conventional Channels, Journal of Marketing, 52(January): 20-35.

  • Hill, Charles W. L. (1988), Differentiation Versus Low Cost or Differentiation and Low Cost: A Contingency Framework, Academy of Management Journal, 13(3): 401-412.

  • Jackson, Barbara B. (1985), Winning and Keeping Industrial Customers: The Dynamics of Customer Relationships. Lexington Books, Lexington, MA.

  • Mallen, Bruce (1973), Functional Spin-off: A Key to Anticipating Change in Distribution Structure, Journal of Marketing, 37(July): 18-25.

  • McDaniel, Stephen W. and Kolari, James W. (1987), Marketing Strategy Implications of the Miles and Snow Strategic Typology, Journal of Marketing, 51(October): 19-30.

  • McKee, Daryl O., Varadarajan, P. Rajan and Pride, William M. (1989), Strategic Adaptability and Firm Performance: A Market- Contingent Perspective, Journal of Marketing, 53(July): 21-35.

  • Noordewier, Thomas G., John, George and Nevin, John R. (1990), Performance Outcomes of Purchasing Arrangements in Industrial Buyer-Vendor Relationships, Journal of Marketing, 54(October): 80-93.

  • Pondy, Louis R. (1967), Organizational Conflict: Concepts and Models, Administrative Science Quarterly, 12: 296-320.

  • Phillips, Lynn W., Chang, Dae R. and Buzzell, Robert D. (1983), Product Quality, Cost Position, and Business Performance: A Test of Some Key Hypotheses, Journal of Marketing, 47(Spring): 26-43.

  • Porter, Michael E. (1980), Competitive Strategy: Techniques for analyzing Industries and Companies. Free Press, New York.

  • (1985), Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York.

  • Reukert, Robert W., Walker, Orville C. Jr. and Roering, Kenneth J. (1985), The Organization of Marketing Activities: A Contingency Theory of Structure and Performance, Journal of Marketing, 49(Winter): 13-25.

  • and (1987), Marketings Interaction with other Functional Units: A Conceptual Framework and Empirical Evidence, Journal of Marketing, 51(January): 44-58.

  • Robicheaux, Robert and El-Ansary, Adel (1975), A General Model for Understanding Channel Member Behavior, Journal of Retailing, 52(Winter): 13-29.

  • Rosenbloom, Bert (1987), Marketing Channels: A Management View (3 Ed). The Dryden Press, New York.

  • Segev, Eli (1989), A Systematic Comparative Analysis and Synthesis of Two Business-Level Strategic Typologies, Strategic Management Journal, 10: 487-505.

  • Stern, Louis W. and El-Ansary, Adel (1977), Marketing Channels. Prentice-Hall Inc, Englewood Cliffs, NJ.

  • Stern, Louis W. and Reve, Torger (1980), Distribution Channels as Political Economies: A Framework for Comparative Analysis, Journal of Marketing, 44(Summer): 52-64.

  • Weber, Max (1974), The Theory of Social and Economic Organizations, translated by A.M. Henderson and Talcott M. Parsons. The Free Press, New York.

  • Williamson, Oliver E. (1979), Transaction-Cost Economics: The Governance of Contractual Relations, Journal of Law and Economics, 22(October): 233-261.

  • (1981), The Economics of Organization: The Transaction Cost Approach, American Journal of Sociology, 87: 548-577.

  • Wind, Yoram and Robertson, Thomas S. (1983), Marketing Strategy: New Directions for Theory and Research, Journal of Marketing, 47(Spring): 12-25.

  • Wright, Peter (1987), A Refinement of Porters Strategies, Strategic Management Journal, 8: 93-101.

  • , Kroll, Mark, Tu, Howard and Helms, Marilyn (1991a), Generic Strategies and Business Performance: an Empirical Study of the Screw Machine Products Industry, British Journal of Management, 2: 57-65.

  • , , Chan, Peng, and Hamel, Karin (1991b), Strategic Profiles and Performance: An Empirical Test of Select Key Propositions, Journal of the Academy of Marketing Science, 19(Summer): 245-254.

  • Zeithaml, Carl P. and Zeithaml, Valerie A. (1984), Environmental Management: Revising the Marketing Perspective, Journal of Marketing, 48(Spring): 46-53.


Abstract Views: 696

PDF Views: 1




  • Channel Structure and Strategic Choice in Distribution Channels

Abstract Views: 696  |  PDF Views: 1

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