Ch. 7
Stewardship in Action I: Supplier-side Case Studies
Three Archetypes of Marketing Channels
1.
Vertically Integrated Channels: “Hierarchy”
2. Thirdparty delegated Channels: “Market”
3.
Composite Channels: “PIC”
* What Other Types Exist?
Ch. 7
Stewardship in Action I: Supplier Case Studies
I. Vertically Integrated Channels
1.
Zara’s Model: (Video)
1. Fast Fashion through Internal Alignment
2. Key Alignment Mechanisms: IT and Empowerment
2. Any other company you can think of?
Ch. 7
Stewardship in Action I: Supplier Case Studies
II. Third-party Delegated Channels
1. Key Alignment Mechanisms: information, trust, and commitment [my thought]
2. Example of a Market Leader: CISCO
3. Example of a Market Follower: Atlas-Copco
4. Any other company you can think of?
Ch. 7
Stewardship in Action I: Supplier Case Studies
III. Composite Channels
1. Meaning
2. Example 1: Becton Dickinson
3. Example 2: Hunter Douglas
Ch. 7
Stewardship in Action I: Supplier Case Studies
IV. Toward Virtual Integration
1. Meaning: From vertical integration by ownership to vertical integration by information
2. Example: Haworth Office Furniture
Ch. 8
Stewardship in Action II: Intermediaries Cases
I. Intermediaries often fail to take advantage of their customer access Gross (Net) Margin focus
Lack of insight on individual customers
II. Ex 1: Wal-Mart: Channel Steward or Power Monger?
(Video)
III. How many cooks do you need in the kitchen?
Ch. 8
Stewardship in Action II: Intermediaries Cases
IV. Four Principles of Intermediary Stewardship
1. Create Offering that Addresses Demand-Chain Needs
1.
Ex) Best Buy’s Evolution
2.
Ex) Neiman Marcus: “Editor of Luxury Brands”
Ch. 8
Stewardship in Action II: Intermediaries Cases
IV. Four Principles of Intermediary Stewardship
2. Blend the Channel Value Chain and Channel Power
1. Ex) H-E-B: Regional Concentration, Customer
Loyalty, and Own Brand Program.
= Fareway Supermarket
Ch. 8
Stewardship in Action II: Intermediaries Cases
IV. Four Principles of Intermediary Stewardship
3. Gain Expertise and Leverage It
1. Ex) Arrow Electronics: pre- and post-sales
Assistance to SMB segment of IT industry
Ch. 8
Stewardship in Action II: Intermediaries Cases
IV. Four Principles of Intermediary Stewardship
4. Influence Stewardship through Performance
1. Ex) Relationship Evolution between
GE and RCI Master Distributor: Focus on
Repair and Replacement of GE parts and components