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MANAGING THE DIGITAL ENTERPRISEMICHAEL RAPPA

<9>CHANNEL CONFLICT

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Hungry minds:

Customer Channel
Migration

Asim Ansari, et al.

Managing Channels
of Distribution in the
Age of E-Commerce

Kevin L. Webb

The Internet’s Role in
the Modern Purchase
Process

DoubleClick

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Case study:

Dell Computer

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Previous topic:

Auctions

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Channelsspace
The hallmark of revolutionary technical change in the marketplace, such as with the emergence of the Internet, is the destruction of traditional business practices -- and firms that adhere to the status quo too long. Managers are forced to "cannibalize" their own profitable businesses only to see a diminished return on investment. If they don't, a competitor will do it for them.

One aspect of the Internet that has received much attention is the web's ability to close the gap between buyer and seller, thereby eliminating layers of middlemen or intermediaries in the distribution channel. For those in the middle, the notion of "disintermediation" is surely an unwelcome turn of events. Since the process of disintermediation is usually not instantaneous, managers find themselves caught in the uncomfortable position of needing to placate business partners in the distribution channel while taking steps toward the eventual demise of these relationships.

The problem of channel conflict is made more complicated by the introduction of new intermediaries that serve the special needs of e-commerce. Delivery, for example, becomes a critical part of overall customer satisfaction.

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Hear the podcast:

Podcast by Professor Michael Rappa

Audio | Transcript

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Things to read:

Learning Objectives

__/ 01-29-2006 \__
Challenges and
Opportunities in
Multichannel Customer
Management

Scott A. Neslin, et al.

__/ 07-08-2004 \__
Channel Conflict and
Coordination in the
E-Commerce Age

Andy A. Tsay
Narendra Agrawal

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Next topic:

Trust

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