Question

A leading soft drink manufacturer is facing a situation of a channel conflict while expanding
their business in another country. It has arisen because of the high level of interdependence in
the supply chain between different parties and channels and the lack of power and control
exercised by the company in the supply chain. All power has been given to the locals which has
inculcated inefficiencies in providing quality customer service and reaching all customers. The
main source of this conflict is the cultural difference between the local distributors and the
company's country of origin. With the company outsourcing the entire supply-chain operation
to locals, the locals feel free to assume their own business philosophies and execution methods
as they hold no fear of disappointing their supplier. Without power and control from the
vertical chain, the distributors are free to deliver as they please, regardless whether they meet
marketing targets. This is a challenge. The challenges faced by the company in a foreign
country are common to multinationals when they enter developing countries. Identify and
briefly describe the type of channel conflict in the above case study.​

Answer 1

Answer:

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