This B2B instance describes a common situation that appears when success is gained by channel partners as well as the perceived balance of power shifts to the channel from the provider. The manager for Bolster Electronic Equipment, among the biggest providers in Canada of state of the art industrial video equipment for harsh environments, must think about a request from Vickers Industrial Supplies, a regional dealer, to be upgraded to a distributor from a car dealer.
Vickers was creating a growing business volume for Bolster in an important market segment, the Canadian oil sands in northern Alberta. Approving Vickers' request will generate smaller margins for the producer, which may be made up with higher projected volume, if the projections are acceptable. The possible reaction of the national distributors of the company is causing concern. Its policy is to distribute its products in Canada through two national providers although Bolster sells to regional car dealers in the U.S., plus it worries that growing Vickers' job will alienate these vendors. Each choice has hazards and benefits.
PUBLICATION DATE: October 02, 2012 PRODUCT #: W12242-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
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