Assessing Channel performance
The AirWick company employs wholesaling as the primary method of distribution. The channel represents about 70% of the total business operation methods in the company. The company sells its products to different wholesalers and retailers in the states’ big cities (Castaldo, Grosso & Premazzio, 2020). Despite being the best method to trade by, some business conflicts exist. The dispute arises where AirWick’s competitors: Iris, Clorox, Ogilvy, and Daymon, among others, rival against each other for the similar sale of the same or a substitute product (Jeon et al., 2017). Similar ventures will always try to outdo the other in a bid to achieve the anticipated success. Therefore, a need for a business to be innovative and cope with the competitive nature is a real requirement for it to survive.
Cooperation with other sellers makes business easy to run, and products become readily available in the desired markets. An example of this partnership that leads to the delivery of better goods and services is the one between Jumia and Reckitt Benckiser in 2020 (Chen et al., 2020). The two companies formed the partnership to provide a continuous supply of hygienic products with affordable pricing models to as many consumers as possible. This is in the idea of curbing the surging demands of the products. On the same note, the Reckitt Benckiser group of companies exercises a trust mechanism with their business partners in order to control opportunism in transactions bound by uncertainties and dependence. Communication is a vital element to be considered in distribution channels too. Creating relationships at each stage of distributions assists in noting challenges, and a way to solve them is found. Ultimately, perfect communication leads to fluent control of business operations.
With the AirWick company having most of its wholesale distribution schedules being physical, the process is becoming outdated, and a need to advance the method is inevitable. In the current world, where technology is at its prime, every company should take its operations online (Efobi, Tanankem & Asongu, 2018). Prospective customers are continuously searching for quality products online on different business websites. Therefore, unless AirWick shifts its operations online, any other physical channel will not bear the desired success. From mid-2020, when COVID-19 hit, Physical contact was minimized, and for this reason, AirWick enterprise could not project an increase in sales volumes in their physical outlets located in different countries. Movements became limited, and an online platform to serve a customer from whatever region becomes the only better option. It’s a move that will never be outage since the global business is headed in the technical direction. Every new day is coming up with discoveries and advancements that are irresistible.
Any business’s success is greatly dependent on the relationship between the enterprise and other business partners (Nakano & Hirao, 2011). Though the partners increase competition when in the same line of operation, the same rivalry comes along with some advantages: the knowhow of market entry is revealed, high-quality products are availed at all time at the same price, the rate of consumption increases, the level of differentiation in the products is maintained, an increase in efficiency in service delivery, and finally the customers level is advanced. For impactful business interactions, these businesses need to have online platforms to consider everything is turning digital (Efobi, Tanankem & Asongu). Having online connections will make communications easier and faster for efficient business operations. Physical or offline methods may fail to be reliable, especially when the business partners are far apart. It becomes tiresome and bulky, too, while with the offline plan. Digitalizing the operations, records, and every other aspect of the business is well managed and easily tracked.
Castaldo, S., Grosso, M., & Premazzi, K. (2020). Retail and channel marketing. Edward Elgar Publishing.
Jeon, J., Kim, J., Park, Y., & Lee, H. (2017). An analytic network process approach to partner selection for acquisition and development. Technology Analysis & Strategic Management, 29(7), 790-803.
Chen, C., Cui, J., Liu, G., Wu, J., & Wang, L. (2020). Survey and Open Problems in Privacy-Preserving Knowledge Graph: Merging, Query, Representation, Completion, and Applications. arXiv preprint arXiv:2011.10180.
Efobi, U. R., Tanankem, B. V., & Asongu, S. A. (2018). Female economic participation with information and communication technology advancement: Evidence from Sub‐Saharan Africa. South African Journal of Economics, 86(2), 231-246.
Nakano, K., & Hirao, M. (2011). Collaborative activity with business partners for the improvement of product environmental performance using LCA. Journal of Cleaner Production, 19(11), 1189-1197.
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