Supor: How to Resolve Channel Conflict
In 2007, the chairman of Supor Group led the company in a new venture in the sanitary ware industry. Supor Group was the first listed company in the Chinese cookware market, and Supor Sanitary Ware Co., Ltd. (Supor) was Supor Group’s most important industry. Supor established three production bases in Zhejiang and Shenyang, China. Its marketing channels included brand agents and direct-sale stores. The company also opened an online flagship store on Tmall, a Chinese-language website for business-to-consumer online retail. Since its performance on Tmall was poor, the company outsourced this channel to Company X. However, this led to channel conflict between online and offline channels. How could Supor Group resolve the conflict, improve channel performance, and achieve channel synergy?
Collection: Ivey Business School (Canada)
Ref: IVEY-9B16M161-E
Format: PDF
Number of pages: 9
Publication Date: Sep 29, 2016
Language: English
Review date: Sep 29, 2016
What material is included in this case:
Description
In 2007, the chairman of Supor Group led the company in a new venture in the sanitary ware industry. Supor Group was the first listed company in the Chinese cookware market, and Supor Sanitary Ware Co., Ltd. (Supor) was Supor Group’s most important industry. Supor established three production bases in Zhejiang and Shenyang, China. Its marketing channels included brand agents and direct-sale stores. The company also opened an online flagship store on Tmall, a Chinese-language website for business-to-consumer online retail. Since its performance on Tmall was poor, the company outsourced this channel to Company X. However, this led to channel conflict between online and offline channels. How could Supor Group resolve the conflict, improve channel performance, and achieve channel synergy?
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Year: 2015
Geographic Setting: China
Industry Setting: Manufacturing;
Learning Objective
This case is suitable for MBA and executive courses in strategic management and marketing management. It offers students an opportunity to master the following theoretical and practical points: ·The strengths and weaknesses of different e-commerce channels that traditional manufacturing companies can adopt, as well as their application conditions ·The causes of channel conflict in multichannel situations, especially in the e-commerce context, and the possible solutions for each cause ·The advantages that the synergy of online and offline channels and the online-to-offline marketing mode can bring to the traditional manufacturing industry
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