Channel Challenges - Channel Microsystems
Keller Graduate School of Management Devry University
Channels of Distribution
What are the pros and cons of choosing this distributor?
When selecting a channel partner, SPEAR, an acronym that describes important selection criteria, is often used to target the best candidate during a selection process. Aridi Graphics should evaluate each of the components of SPEAR in selecting a Western Europe distributor.
The first element of SPEAR outlines the importance of selecting an intermediary who is knowledgeable of the Sales environment. In this case, the candidate identified at the MacWorld exposition is an ideal intermediary from a ...view middle of the document...
Aridi must ensure that the prospect has experience perhaps through competitive software solutions or contacts directly within the reseller industry. Administrative factors are also a crucial aspect of SPEAR. This is an area that could potentially pose a negative impact for Aidi Graphics in relation to regional challenges. Aridi must investigate the prospects bandwidth to ensure availability of manpower as well as its ability to identify and manage challenges or issues such as inventory, cost or customer service. Risk factors represent the final component of SPEAR. According to the Channel Challenge excerpt, the prospect met for the first time at the exposition. While this is obviously an ideal place to meet individuals who have common interest it does not guarantee high business ethics, integrity, commitment, logistical requirements and dedication to customer satisfaction. These factors greatly impact the brand from a global perspective. As the saying goes, “one rotten apple spoils the entire bunch.” Therefore its critical to thoroughly investigate all risk factors in attempt to avoid factors that may negatively impact Aridi Graphics both short term and long term.
How effective are trade shows insofar as being a good venue at which to select a distributor?