Diagnostic Report Of ST Company’s Special Distribution Channel

Facing to the increasingly competitive environment, the construction of distribution channels becomes more and more significant. Channels have become the core competitiveness of enterprises because they are not easily imitated by competitors in a short time. As a type of channels, special distribution channel has manufacturers make good control of the deliveries and services of their products, and thus improves the advantages of products, brand and enterprise image. It also has distributors focus on the sales of products, and helps manufacturers to achieve a strong control on the distribution. It shortens the chain of benefits allocation, and therefore increases the profits of enterprises and their distributors. As a result, it is more and more widely used in clothing, automotive, electrical, electronics, building materials and other industries.ST Company is adopting special distribution channel which has been the supporting sale method. This paper took ST Company as an example. Through the depth interviews to the company’s internal management personnel and members of main channels, the paper diagnosed problems that existed in the management of specialty distribution channels from the aspects of operation condition, service level and financial performance. It is found out that unequal distributors’ qualification, unreasonable channel layout, limited quantity of stores, low operation level, and lack of incentive policy are ST Company’s five main problems.After analyzing the causes, this paper brought up some specific measures in chapter 5 to solve the problems. The aim is to continuously improve the management and quality of channels, push company to move forward, and better serve the channel members and end customers.