A company that aggressively pursues an online sales strategy risksMultiple choice question.losing the benefits that accrue from channel conflict.threatening crucial relationships with distribution allies.retaliation from suppliers.signaling too strong a strategic commitment to dealers.
Question
A company that aggressively pursues an online sales strategy risksMultiple choice question.losing the benefits that accrue from channel conflict.threatening crucial relationships with distribution allies.retaliation from suppliers.signaling too strong a strategic commitment to dealers.
Solution
The company that aggressively pursues an online sales strategy risks:
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Losing the benefits that accrue from channel conflict: This can happen if the company's online sales strategy causes conflicts with other sales channels, such as physical stores or third-party retailers. These conflicts can lead to a loss of benefits, such as reduced competition or increased bargaining power.
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Threatening crucial relationships with distribution allies: If the company's online sales strategy is seen as a threat by its distribution allies, it could damage these important relationships. This could lead to a loss of support from these allies, which could negatively impact the company's distribution network and sales.
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Retaliation from suppliers: If suppliers feel threatened by the company's online sales strategy, they may retaliate by increasing prices, reducing supply, or even refusing to do business with the company. This could significantly impact the company's operations and profitability.
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Signaling too strong a strategic commitment to dealers: If the company's online sales strategy is seen as a strong commitment to dealers, it could signal to other potential partners or customers that the company is not interested in pursuing other types of relationships or sales channels. This could limit the company's flexibility and potential for growth.
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