Channel strategy in the data projector industry

Summary form only given. Channel strategy in technology markets too frequently takes a minor position behind decisions focused on product, pricing and marketing communications. All too often, technology start-up firms will exchange customer intimacy for an indirect sales approach that facilitates greater market reach at lower cost. However, intensifying competition and technology advances, such as the Internet which enables direct channels, are rapidly elevating the importance of channel decisions as a source of competitive advantage. This paper uses the example of the US data projector industry to illustrate the issues and benefits of channel strategy in emerging markets. Entrepreneurial American firms that embraced a product-focused business model started the business projector industry. However, as is typical in many electronics markets, large Asian firms were soon attracted to the high growth rates and margins of the emerging market opportunity. Without the strong brand names and indirect channel dominance of large Asian electronics firms, many of the pioneers are struggling to maintain an industry presence. A focused channel strategy offers these firms a mechanism for navigating through market turbidity by focusing on the customer´s needs and delivering the best value through an optimal blend of channel options