Channel Issues (Synergy)_Halima
- 1. Sultan Qaboos University College of Economics and Political Science Marketing Department Marketing Channels (MRKT 3634) Fall 2014 Assignment 4 Channel Issues (Synergy) Submitted by: Halima Mubarak Al Kalbani ID#: 92558 On: 25/11/2014
- 2. Channel Synergy: The emergent of online retailer stores like Amazon.com have raised the question of whether those online retailers need to add a traditional retail stores along with their channel strategy or not or is it going to add some sort of advantages when synergy among channels is accomplished. In my opinion, the answer will be depending on the company’s strategy, target market, distribution objectives, channel position, design and policies plus every firm has to pay attention to their channel members and the fast changes in technology. However, for an online retailer like Amazon.com that was founded two decades ago with a single online channel as their business model and still they are one of the successful retailers with a sales of 74.45B$ for the year of 2013. In addition, Amazon.com has truly succeeded in meeting the demand of their target market better than competitors. However, multiple channel strategy can carry a mix of challenges and opportunities, especially with building synergy among the channel members. Combining physical and online stores with a true synergy; have many advantages. Those advantages are; the firm will have the choice to offer variety of products to clients, redaction on the physical space acquired in the shop shelves or stores, increase brand image & customer awareness and as Fernando Aparicio mentioned in the Amvos website “Access to a larger number of potential customers. In a world where it is expected that e-commerce transactions to be conducted worth of 323,000 million Dollars in 2020, is there still anyone planning to add the benefits of an online channel to the usual offline channel?” (Aparicio, 2014). On the other hand, there are many disadvantages; in multichannel system the dilemma of price policy sitting always arises and the level of setting promotions and discounts will vary among the channels plus in online channels. In conclusion, the answer of such a question will always depend on the internal and external effects on which any company operates.
- 3. . List of References Aparicio, F. (2014, January 29, Wednesday). advantages-disadvantages-multi-channel-sales. Retrieved 11 24, 2014, from Amvos: http://www.amvos.com/en/blog/2014/01/29/advantages- disadvantages-multi-channel-sales/ Rosenbloom, B. (2013). Marketin Channels A Managment view. Canada: South Western : Drexel Universty.