Channel Strategy

BASIC INGREDIENTS FOR A SUCCESSFUL CHANNEL ALLIANCE Prof.Chris Abraham

Thorough assessment of participant strengths

Build a relationship based on those identified strengths that provide necessary elements for successful operation of the partnership.

Value consistency

Identify a partner with similar corporate values to ensure that both firms are able to co-mingle human and financial resources without substantial debate.

Clear understanding of objectives

Ensure that clearly defined goals and objectives are discussed in preliminary negotiations for the facilitation of further coordination of activities

Agreement of measurement standards

Establish measurement criteria that clarify the initial partnership vision at the activity level for employees of both participants

Long-term focus

Create a long-term perspective on the relationship that does not endanger the initial investment through expectation of immediate results.

Multiple –level commitment

Provide continuity and depth of commitment through approval and reinforcement of the partnership across several management levels (including the CEO)

Working relationship at interface level

Foster coordination of the partners at the interface level to ensure that daily activities are successfully accomplished once the task forces have clearly established the goals and objectives.

Limited number of relationships

Limit the number of legitimate partnerships in which either firm is actively engaged to acknowledge the extensive time requirements at key levels in the company

Elimination of “quid pro quo” mentality

Maintain an attitude that allows for changes in the original agreement which benefit the entire product supply chain, regardless of the timing of individual costs or returns (i.e., permit sub optimization)

Prices are negotiated, not bid and subject to change

Remain committed to ultimate resolution of conflict through negotiation in the interest of continuing the relationship over the long term.