d.light Design, manufacturer of solar powered LED lamps was seeking to enter into the Indian market in 2009. The site of the company’s manufacturing plant was in China led by co-founder Ned Tozun, who was a business school friend of Sam Goldman, founder and Chief Customer Officer of d.light who was in Delhi, India for the purpose of studying the challenges that would encountered the company while entering in this segment.
Primarily Goldman and Tozun had to decide whether they should adopt only one distribution channel in India or they had to focus on multiple channels. The constraints that they faced was limited capital, so it needed to choose the most appropriate distribution channel to generate the revenue quickly.
Unlike the other case, which have more focus on product design or manufacturing challenges while entering in the new segment, this case mainly stimulate the questions that the challenges regarding the alignment of distribution channel d.light faced, could have legal, environmental or managerial foundations?
Recommended channel structures in the case might lead to the demand side misalignment, channels that are recommended, (a) the Rural Entrepreneur channel, (b) the village retailer channel, or (c) the centralized shop channel. Now one of the key decision Goldman and Tozun was needed to make that what single channel or what mix of channels d.light should select for this new market segment. Although, the revenue probably based on the company’s cost structure and overhead cost in this market.
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