Research On Channel Management Strategy Of D Company

With the depth of the economy globalization and China’s reforming and opening up, it becomes an inevitable trend that multinational companies set into the Chinese market. However, multinational companies will often encounter many problems when they really get into the Chinese market. Channel Management problem is one of them to be solved. And theoretical study of channel management has attracted a large number of scholars since1920s. Among those studies, channel effectiveness management theory represented by Wilde and Battle, channel power and conflict management theory represented by Stern and EL-Ansary, channel relationship management theory represented by Alderson, are most famous. These theories have a very important guiding function on channel management practice. Thus, in order to better adapt to Chinese market environment and solve their channel management issues in Chinese market effectively, multinational companies must develop a channel optimization strategy combined with channel management theories and actual situation of company.Company D is a large multinational company in Denmark. It has achieved rapid growth in Chinese market since1994and the company has positioned Chinese market as their "second home" and occupied a leading position in the market through acquisition, shares and many other ways. However, D company has also exposed many problems in their management, especially channel management which is too loose to cause serious losses. To some extent, the channel problems D company encountered is a microcosm of multinational companies channel problems in Chinese market. So, study on the channel management problems is very necessary.The purpose of this study is to do a research on the channel problems of D company, combined with channel management and other related theories, and then enlarges the scope to analyze the common channel management problems in multinational companies when they get into Chinese market. On the study method, this paper draws on management, economy and multiple theories, combined with the research results of many Chinese and foreign scholars, using literature research and case study approach to explore the status, problems and causes of problems of channel management of D company. And put forward the optimization strategy and specific measures of channel management of D company. Following extensive literature research and in-depth study of the D company case, this paper suggests the conclusion that the Chinese market channel management of multinational companies should be combined with Chinese market environment and actual situation of company itself. Lots of channel management problems of multinational companies are caused by the simple copy of their business model abroad. Besides, problems are closely related to their development strategy in Chinese market, especially rapid expanding market strategy which will often lead to channel management loopholes.The innovation of this paper is imaging the big from the small. Through in-depth analysis of channel management of D company, to see the common channel management problems in the Chinese market of multinational companies. And combined with the channel management theories, propose concrete solutions for the corresponding problems.