Distribution channels (dc) in the technological industry - ideas for improvement in Argentina

Abstract

For many years, the DC operation -covering massive sales and value added solutions- have been a reality in the Argentinean technological industry. Manufacturing companies have used them as a central part of their commercial growth/value added strategies to provide greater geographical coverage and adequacy to the products/services offered. As a result, this work shows different DC facets of this environment and possible improvement aspects. Management focus could bring better performance levels for the organizations that configure this complex and exciting industry. The hypothesis of this study –which was corroborated- is that there are aspects that can be improved in the DC operation of the Argentinean technological industry, bringing value added and sustainable growth to the companies’ network. Main findings of this work reveal that long DC and hybrid models are mostly used by manufacturers because they improve commercial reach, final customers’ solutions and purchase experience, providing the highest possible flexibility and profitability. It also requires cost optimization, channel efficiencies and vertical conflicts reduction. In addition, there are challenges connected to: a) the whole DC network value understanding and the optimal channel level mix, b) customer demand generation, c) the technology/cloud-based businesses and the SMB (Small Medium Business) that need more personalization and value added focus, d) remote channels/online platforms versus physical channels, e) the Opportunity Registration process as a way to protect the DC investment in certain key customers, and f) training opportunities, among others. The final objective referrers to get away from imitation and commoditization, proposing a unique value proposition for which strategy and marketing plans should create long term customer value. Finally, best practices are remarked as a way to evolve to new performance levels. The study is exploratory-descriptive, with a qualitative methodology, and it is supported with a bibliographical and an empirical analysis.