Challenges an organization faces in managing its channel members
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Identify the primary challenges an organization faces in managing its channel members. What are some of the methods companies use to motivate channel partners?
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The primary challenges in an organization faces in managing its channel members is examined.
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Running Head: CHANNEL MANAGEMENT
Challenges in Channel Management
Primary Challenges
There are various primary challenges an organization faces in managing its channel members. These are as follow:
Convincing Distributors: Distributors play a vital role in channel management. It is the primary challenge for an organization to convince distributors to ensure their working as a team for the value delivery system of the organization (Mühlbacher, Leihs & Dahringer, 2006). It is not an easy task for an organization to convince distributors that they can work together. For developing confidence, it is essential for the organizations to develop trust and confidence among channel members.
Use of Buyer-seller technologies: It is also a primary challenge for the organizations to understand and apply buyer-seller technologies for managing their channel members (Lee & Qualls, 2010). For example, Wal-Mart, P&G and Tesco follow RFID for managing their supply chain. So, to use RFID type technology, it is vital for the organizations to first understand this concept effectively.
Communication: Intensive communication is another primary challenge; an organization faces in managing its channel members. It is not easy for an organization to ensure that activities of channel members are in accordance to the global strategies of the organization.
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