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ARTICLE · 06 MARCH 2008

How to Tell When Channel Conflict is Destructive

Multiple channel strategies are a way of life for manufacturers today.

United StatesStrategy

Channel Conflict in Brief

Multiple channel strategies are a way of life for manufacturers today. Whether you are managing a mix of direct and indirect channels or a spectrum of high-support to lowsupport resellers, the reality is that channel conflict will be an ongoing issue in your marketplace.

A limited amount of channel conflict is healthy. It indicates that you have adequate market coverage. However, once the balance between coverage and conflict is lost, destructive channel conflict can quickly undermine your channel strategy, market position and product line profitability.

Conflict can show up in the market in a variety of ways. A point of confusion for many manufacturers is whether problems are truly symptoms of destructive channel conflict or other marketing or channel strategy issues. When faced with potential indicators of destructive conflict, you should audit your market position to

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