The most effective channel structure Essay Example | Topics and Well Written Essays - 3000 words

The most effective channel structure - Essay Example Specification of distribution tasks in order to achieve the set objectives was done using the five task groups namely physical distribution, after sale service, channel support, selling and risk assumption. The next stage involved selecting alternative channel structures using the channel levels, intensity and intermediary levels after which evaluation of the alternatives was done using the weighted factor score approach. This helped to determine the effective channel strategy which was to provide accommodation services so as to reduce costs for tourists hence attract them. This is to differentiate Webjet from the competitors and gain sustainable competitive advantage. An implementation plan was then designed to achieve the results needed. Table of Contents Executive summary 1 Table of Contents 2 List of Tables and Figures 4 1. Introduction 5 1.1 Authorization 5 1.2 Limitation 5 1.3 Scope of Report 5 2. Case Background 6 2.1 Company Background 7 2.2 Channel Design Decision Paradigm 7 3. Major Case Issues 9 4. Situation Analysis 9 4.1 Internal AND EXTERNAL Analysis 9 4.2 INTERNAL ANALYSIS 10 4.3 External Analysis 11 4.4 Setting and Coordinating Distribution Objectives 11 4.5 Distribution Tasks 12 4.5.1 Selling 12 4.5.2 Channel Support 13 4.5.3 Physical Distribution 13 4.5.4 Product modification and after-sales services 14 4.5.5 Risk Assumptions 14 5. Identifying Alternative Channel Structures 14 5.1 Number of Channel Levels 15 5.2 Intensity at Each Level 16 5.3 Types of Intermediaries 16 5.4 Alternative Channel Structure Strategy 16 6. Evaluation of Alternative Channel Structure 17 6.1 Company Variables 17 6.2 Market Variables 18 6.3 Product Variables 19 6.4 Intermediaries Variables 20 6.5 Weighted Factor Score Approach 20 7. Recommended Strategy 21 8. Implementation plan 21 9. Conclusion 22 10. List of References 24 List of Tables and Figures Figure A- Channel Design Paradigm Adapted from (birch, 2006) 9 Figure B - Channel levels in travel agency Adapted FROM ( Holma, 2010) 15 1. Introduction 1.1 Authorization This report has been authorized by Mr. David Clarke to outline the most effective channel structure for Webjet Limited. In the production of the report, the seven steps of the channel decision paradigm will be utilized. 1.2 Limitation Various limitations were noted while conducting research and producing the report. One of the major limitations was not having a clear timeline for completion of the report. This meant the report could be delayed due to lack of urgency and timeline leading to outdated information which has been overtaken by events and also delays in implementation which could lead to severity of the problem. Another limitation was lack of useful and relevant information from the literature and inability to obtain timely communication from Webjet. 1.3 Scope of Report This report examined a number of ways on how to create or modify the channel design of Webjet Limited. This involved looking into the existing channels and determining if they are suitable for the organization and what could be done to improve on them. This was to assist Webjet to recognize the need to make a decision on the channel design. This involved undergoing the seven channel design stages to come up with the right channel for Webjet. Firstly, a brief background was given for the company selected (Webjet) containing company profile, locations, products and company history together with the channel design