Integrating the export distribution channels after an acquisition

This thesis is based on studying integration synergies in a merger or acquisition situation with the interest in distribution channel integration. M&As seem to be forever popular and nowadays companies often use them as a certain kind of strategy to develop their business. M&As have attracted research for decades and also distribution in M&As has been found interesting. Moreover, research often concentrates to the horizontal M&A´s potential synergies that emerge in the integration process and so is the case also in this study as the core issue is to study the integration of the distribution channels and its potential synergies. This study concentrates on a single case, an acquisition which took place in 2011. The case consists of two Finnish companies operating in the same business field. Both of the companies are very export orientated, which gives this study its export view. As the companies operate in the same field this acquisition falls into the categorization of horizontal acquisition. The objective of the thesis is to study how the export channels could be integrated after an acquisition? This research question is divided again to three sub-questions asking how the distribution channels of the acquirer and acquired company are organized, what is pursued by the post-acquisition distribution channel integration and what are the integration challenges especially from the logistics point-of-view. The framework was built from the basis of the literature used in this thesis. The framework combines M&A process and distribution channels to a one united model which presents the progress of this thesis. The study was carried out as a qualitative research and as a holistic single case study. The data used in the research includes two interviews, other material from the case companies and also material of the companies collected by the author independently from different sources. There were many motives for the acquisition as usual. From the research results one can find that the integration process is still very ongoing and the synergies have not yet been fully discovered but also they are there to be found. The concentration of the research was in the export distribution which proved to be meaningful since the exports markets of the case companies were found to be quite complementary. The research results brought up also other issues concerning the post-acquisition integration process rather than the distribution channels and export. M&As are always a risky business. The final result can never be predicted. No matter how good the merging companies look on paper the practice is not the same. The acquisition process of this case has not ended yet and there lies potential synergy benefits to be discovered if enough effort is used to go through the process right.

When electronic management tools work - and don't work - in social-based distribution channels:a study of IT manufacturers and resellers

Electronic information tools have become increasingly popular with channel manufacturers in their efforts to manage resellers. Although these tools have been found to increase the efficiency of communications, researchers and practitioners alike have questioned their effectiveness. To investigate how top-down electronic information affects social channel relationships we consider the use of such tools in information technology distribution channels. Using electronic communications theory and channel governance theory we hypothesize that the usefulness of the tools is a function of the type of information inherent in each tool (demand creation information or supply fulfillment information) and the particular communications characteristics of this information.

Two sides to attitudinal commitment:the effect of calculative and loyalty commitment on enforcement mechanism in distribution channels

Previous conceptualizations of attitudinal commitment are extended by considering two very different components of a manufacturer’s attachment to an independent channel intermediary. Relying on commitment theory, a model is developed that describes how attitudinal commitment may reside in either the instrumental or the social strain of a manufacturer’s relationship with its distributor. For each strain, the developmental role played by key facets of the channel setting—relative dependence, pledges, and trust—are shown. Furthermore, the nature of the attachment bond is posited to motivate very different governance mechanisms as the distribution agreement is enforced by either social or contractual means. Empirical support for the model demonstrates that an expanded view of attitudinal commitment is important in understanding the complex nature of attachment in channel relationships.

Power in distribution channels - Supplier assortment strategy for balancing power

This paper focuses on the move from buyer dominance toward interdependence between buyers and suppliers in a distribution channel. The paper introduces a case study collected through in-depth interviews and participative observations. It examines the relationships between a timber supplier and its customers in the builders' merchants sector. We stress the relevance of considering actions intended to change the power balance, rather than focusing only on trust. The power balance in a dyadic relationship is dynamic, and power positions need to be constantly re-evaluated. An important power resource is information asymmetry, manifested in the supplier's information about: products, regional and local demand, and the usage of the products. For practitioners, we highlight the possibility of exerting a non-coercive power resource, such as information asymmetry, in order to increase the relative power. Furthermore, being open about the power position between a buyer and a seller can foster a more efficient collaboration.

‘Never Let Me Down Again’1: Loyal customer attitudes towards ticket distribution channels for live music events: a netnographic exploration of the US leg of the Depeche Mode 2005–2006 World Tour

Ticket distribution channels for live music events have been revolutionised through the increased take-up of internet technologies, and the music supply-chain has evolved into a multi-channel value network. The assumption that this creates increased consumer autonomy and improved service quality is explored here through a case-study of the ticket pre-sale for the US leg of the Depeche Mode 2005–06 World Tour, which utilises an innovative virtual channel strategy, promoted as a service to loyal fans. A multi-method analysis, adopting Kozinets' (2002) Kozinets, R. V. 2002. The field behind the screen: using netnography for marketing research in online communities. Journal of Marketing Research, 39: 61–72. [CrossRef], [Web of Science ®] netnography methodology, is employed to map responses of the band's serious fan base on an internet message board (IMB) throughout the tour pre-sale. The analysis focuses on concerns of pricing, ethics, scope of the offer, use of technology, service quality and perceived brand performance fit of channel partners. Findings indicate that fans behaviour is unpredictable in response to channel partners' performance, and that such offers need careful management to avoid alienation of loyal consumers.

Electronic Channels of Distribution: Challenges and Solutions for Hotel Operators

This paper addresses the issues of hotel operators identifying effective means of allocating rooms through various electronic channels of distribution. Relying upon the theory of coercive isomorphism, a think tank was constructed to identify and define electronic channels of distribution currently being utilized in the hotel industry. Through two full-day focus groups consisting of key hotel executives and industry practitioners, distribution channels were identified as were challenges and solutions associated with each.

Mapping out customer segments and marketing channels in the Finnish Homelift market

Työn tavoitteena oli saada selville ketkä ovat uuden tuotteen, eli kotihissin asiakkaat. Mitkä ovat tuotteen mahdollisuudet Suomen markkinoilla ja onko markkinoilla odotettavissa kasvua, sekä miten tähän mahdolliseen kasvuun päästäisiin käsiksi. Kotihissin ominaisuudet vaikuttavat siihen, että se on tarkoitettu asennettavaksi yksityisiin pientaloihin. Uuden tuotteen ansiosta KONE voi liittää nykyiseen vahvaan toimialaansa, eli kerrostaloihin, uuden aluevaltauksen; Pientalot. Tämä 'laajentuminen' tuo mukanaan kuluttajamarkkinoiden haasteet. Markkinatilanteen selvittämiseen käyttin jo olemassa olevaa tietoa hyväkseni; sanomalehdistä markkinatutkimuksiin. Asiakasryhmät kartoitin tutustumalla messutapahtumissa saatuihin kontakteihin. Päätutkimusmenetelmänä käytin haastatteluja. Niihin osallistui kaikkiaan 14 vastaajaa. He vasatsivat kysymyksiin ostomotiiveista ja tuotteesta. Eräs haastattelujen tärkeimmistä teemoista liittyi yhteydenpito- ja jakelukanaviin, joista 12 vastaajaa antoivat mielipiteitään. Työni tulokset viittaavat siihen, että markkinatilanne näyttää positiiviselta KONEen kannalta. Tutkimuksesta sain selville kotihissin asiakassegmentit ja myös miten nämä potentiaaliset asiakkaat saadaan tehokkaimmin tavoitettua.

Distribution channel plan for wound care products: Case 3M Finland Ltd.

The aim of this master’s thesis was to make a qualitative marketing research and on the basis of this to develop a distribution plan for the case company Finnish 3M Ltd.’s wound care products. The literature review includes three important parts: distribution channel planning, the buying behavior of seniors, and special characteristics of health care products’ marketing. The empirical part of this thesis comprises two different parts. The first part is a marketing research, in which the buying behavior of wound care products is studied in Espoo. The research aim was to examine, in which distribution channels the wound care patients under home care would most preferably buy wound care products during the time period, when municipalities will not yet provide the products for free. The data was collected through semi-structured phone interviews and regular interviews, and was treated qualitatively and anonymously. The study revealed that the recommendations of nurses and doctors influenced most the buying behavior of wound care customers. In the second part of the thesis a distribution channel plan for wound care products was made for the case company 3M Finland Ltd. based on the results. 3M Finland Ltd. should focus on pharmacies, online-stores and municipal health centers as their main distributors.

Software business expansion through distribution channel : Case M-Files - Denmark

The purpose of this study was to find out how a software company can successfully expand business to the Danish software market through distribution channel. The study was commissioned by a Finnish software company and it was conducted using a qualitative research method by analyzing external and internal business environment, and interviewing Danish ICT organizations and M-Files personnel. Interviews were semi-structured interviews, which were designed to collect comprehensive information on the existing ICT and software market in Denmark. The research used three external and internal analyzing frameworks; PEST analysis (market level), Porter´s Five Force analysis (industry level competition) and SWOT analysis (company level). Distribution channels theory was a base to understand why and what kind of distribution channels the case company uses, and what kind of channels target markets companies’ uses. Channel strategy and design were integrated to the industry level analysis. The empirical findings revealed that Denmark has very business friendly ICT environment. Several organizations have ranked Denmark´s information and communication technology as the best in the world. Denmark’s ICT and software market are relatively small, compared to many other countries in Europe. Danish software market is centralized. Largest software clusters are in the largest cities; Copenhagen, Aarhus, Odense and Aalborg. From these clusters, software companies can most likely find suitable resellers. The following growing trends are clearly seen in the software market: mobile and wireless applications, outsourcing, security solutions, cloud computing, social business solutions and e-business solutions. When expanding software business to the Danish market, it is important to take into account these trends. In Denmark distribution channels varies depending on the product or service. For many, a natural distribution channel is a local partner or internet. In the public sector solutions are purchased through a public procurement process. In the private sector the buying process is more straight forwarded. Danish companies are buying software from reliable suppliers. This means that they usually buy software direct from big software vendors or local partners. Some customers prefer to use professional consulting companies. These consulting companies can strongly influence on the selection of the supplier and products, and in this light, consulting companies can be important partners for software companies. Even though the competition is fierce in ECM and DMS solutions, Danish market offers opportunities for foreign companies. Penetration to the Danish market through reseller channel requires advanced solutions and objective selection criteria for channel partners. Based on the findings, Danish companies are interested in advanced and efficient software solutions. Interest towards M-Files solutions was clearly seen and the company has excellent opportunity to expand business to the Danish market through reseller channel. Since the research explored the Danish ICT and software market, the results of the study may offer valuable information also to the other software companies which are expanding their business to the Danish market.

Distribution of Smart Solutions for External Lighting in Switzerland - Case C2 Smartlight Ltd.

Establishing of export operations is the key to the competitiveness for all producing companies in high-tech industry. Distribution partnerships between exporting producer and local distributors of relevant foreign market are utilized by SMEs to gain cost-efficiency of operation. The purpose of this study was to investigate the Swiss market of outdoor lighting solutions and propose distribution channels for the case of company C2 SmartLight Ltd. The literature framework consists of three main parts: description of distribution channels for business products, the selection process of the distributor and management of the distributors. The empirical part of this study composed of the observation of Swiss lighting market, highlighting key customers, trends of energy efficiency and key industry players of the lighting market. The aim was to identify potential distribution channels, which reach the target customer groups and identify the market opportunity. Secondly, the data was collected through semi-structured phone interviews. The company, which operates in outdoor lighting business and has an established distributor in Switzerland, was interviewed and used as a benchmark. As a result of this research the market opportunity for distribution of C2 SmartLight products was identified based on potential customers and market need. C2 SmartLight Ltd. should establish a connection with wholesalers that distribute easy to handle and store electrical equipment. The results of this study can be used by other SME companies, operating in a similar field of economy, for selection of distributors.

Marketing Channels in Ornamental Fish Trade in West Bengal

A lucrative export market and high domestic demand has made ornamental fish industry in West Bengal a potential source for income generation. The study aimed to identify: (i) the commercially important size groups of main ornamental fish varieties available in the state; (ii) the existing supply chain; (iii) major constraints for development of the industry; (iv) and to anlayse price spread of commercially important varieties; and (v) to evaluate the profitability of operation at different stakeholder levels in the marketing chain. Export market of ornamental fishes in the state followed a single supply channel while three different distribution channels existed in the domestic market. High electricity charges was the major problem faced by breeders (producers/rearers) whereas lack of technical knowledge regarding transportation was the major constraint for wholesalers. Lack of knowledge on proper health management inhibited the growth of retail industry. The fresh water catfish, angel, molly, arowana, gold fish, tetras, and gouramis showed comparatively higher breeders’ share in consumers’ rupee. Wholesalers were earning comparatively higher annual profit than the other stakeholders due to moderate initial investment and also due to the comparatively lower risk involved.

Electronic Channels of Distributions: Challenges and Solutions for Hotel Operators

This paper addresses the issues of hotel operators identifying effective means of allocating rooms through various electronic channels of distribution. Relying upon the theory of coercive isomorphism, a think tank was constructed to identify and define electronic channels of distribution currently being utilized in the hotel industry. Through two full-day focus groups consisting of key hotel electives and industry practitioners, distribution channels wen identified as were challenges and solutions associated with each

An investigation into commitment in non-Western industrial marketing relationships

This paper reports an investigation into the antecedents of commitment in non-Western industrial marketing relationships. The authors draw the antecedents from extant literature and posit that commitment is related to trust (integrity and reliability), communication quality, conflict, and similarity (social, ethnic, and economic). It is further argued that trust mediates the effects of communication, conflict, and similarity on commitment. As an extension, the authors examine the moderating effects of normative contracts (an implicit understanding of roles and responsibilities) on the construct interrelationships. The hypotheses are tested using data collected from approximately 150 industrial marketing relationships sampled from overseas Chinese firms. The results generally support the authors' framework; however, the mediating hypotheses are not supported. There is evidence of systematic differences in the effects of the studied antecedents on commitment and trust. Furthermore, a multigroup analysis provides evidence of significant moderating effects due to contracting mode. The study provides new insights into the theory and practice of industrial marketing. (C) 2003 Elsevier Science Inc. All rights reserved.

Is category management in small supermarkets worth the effort?

Category management (CM) is an important tool to strengthen the relationship between manufacturers and retailers. This process has been associated with large corporate retailers; however, some recent researches show that CM is open to companies of any type or size. This possibility is important in emerging markets, where neighborhood supermarkets are still representative and are often considered an alternative for manufacturers to achieve higher margins compared to big chains. In this context, the aim of this research was to analyze the results of a CM initiative in small neighborhood supermarkets from a manufacturer perspective. Data for the study comes from a food manufacturer in Brazil that implemented a CM process with 180 small retailers. A quantitative analysis was conducted in order to analyze the effect of the program on the food manufacturer' s sales and market share. Our analysis suggests an overall positive effect of the program on both, sales and market share.