3C Distributors’ Value Creation
Date Issued
2009
Date
2009
Author(s)
Chen, Hsueh-Ching
Abstract
The boom in Taiwan’s information technology (IT) manufacturing industry activates the overall 3C retail channel. However, with the rapid changes in IT industry environment, shortened product life cycle, and severe price competition, IT channel can no longer make a profit by increasing economy scale and reducing cost. With the centralization of end retailer, the trend of larger ones becoming even larger exacerbates. Large-scale end retailer takes advantage of its own channel strength to bypass agents and stock from original manufacturer directly. Original manufacturer also deliberately weakens the bargaining power of agents and dominates the sales of related products, contracts, and marketing activities. IT channel is facing the conflict and crisis from channel level shortening. In addition to integrate marketing strategies and adjust product segments, it has become an important issue for agents about how to demonstrate its own value in end channel, establish a good relationship with retailer, and provide market-related knowledge and information other than products.iewing the current status of the IT industry, and the explanation for theory of marketing channels and customer value creation on the agent, specifically, marketing channel theory is of the opinion that the mature products will be sold in low cost channels like supermarkets, mail order, and discount stores (Kotler). However, the agents are responsible for coordination with the original manufacturer and also responsible for coordination with end retailer of marketing network. From the customer value creation theory, understanding of customer value is the sum of economic and non-economic value. (Eggert、Ulaga and Schultz，2005) also verify that customer value comes from three aspects: creating value through the core provision, creating value in procurement process, creating value in customer’s operation. Therefore, agent’s agency status should be very solid. These two theories provide conflicting explanation.he purpose of this study is to combine and prove with different theories (channel marketing, relationship value, network theory) and practical experience to summarize domestic IT channel’s desired transaction value factors and value evaluations to verify whether the IT agent can maintain its agency status of the network. This research uses cross-case study method and visit seven end retailers with different types of operation to deeply analyze the evaluation factors of channel trading value and to further explore the relationship of trading behavior between network members. The result of study shows that network relationship is extremely important to IT agent. Creating value is based on the relationship between the cooperative enterprises,（Anderson &Narus, 1999）. The key to maintain the agent’s agency status lies on whether or not the agent can create additional value in its network relationship.
Subjects
Channel Marketing
Business Network
Value Creation
Relationship Marketing
Relationship Value
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