Ch. 7
Stewardship in Action I: Supplier Case Studies
Three Archetypes of Marketing Channels
1. Vertically Integrated Channels: “Hierarchy”
2. Third-party delegated Channels: “Market”
3. Composite Channels: “PIC”
* Other Types
Ch. 7
Stewardship in Action I: Supplier Case Studies
I. Vertically Integrated Channels
1. Zara’s Model:
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
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 integration by ownership
to integration by information
2. Example: Haworth Office Furniture
Ch. 7
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?
III. How many cooks in the kitchen?
Ch. 7
Stewardship in Action II: Intermediaries Cases
IV. Four Principles of Intermediary Stewardship
1. Create Offering that Address Demand-Chain Needs
1. Ex) Best Buy’s Evolution
Ch. 7
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.
Ch. 7
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
Ch. 7
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