Client Problem

Our client was considering a channel diversification distribution strategy. They engaged SMS to help them decide if it would bear the same fruits in Australia as it has done for major players overseas.

A ‘channel diversification’ distribution strategy involves the utilisation of strategic business partners to resell products and services to an increasingly diverse, complex customer base. Our client had observed with interest how similar strategies had been employed with great success across a range of industries the world over.

SMS was engaged to assess and advise on the sustainability of a channel diversification business model for the Australian Market. 
 

SMS Approach

SMS conducted extensive research and applied stringent assessment methodologies to uncover the information required to recommend a viable strategy for long term success.

SMS analysed relevant global trends and industry best practice in regards to channel diversification. The resulting report contained recommendations for achieving success in executing this strategy.

SMS then conducted a range of interviews with potential channel partners to assess their ability to provide our client with the rates of growth and increased market share they required to justify a channel diversification approach. Comparing their present economic situation and market position with the mechanics of achieving success with this strategy, SMS focussed on identifying:

• distribution partners’ capability to effectively promote and resell our client’s products 
• readiness and willingness of partners to engage 
• cultural and economic suitability with identified partners and our client

Recommendation

SMS produced a series of detailed recommendations to enable effective planning and preparation for the channel diversification distribution implementation.

Focussing on long term profitability, SMS identified and put forward a list of selection criteria for potential partners together with a range of economically sound and sustainable implementation options. SMS then engaged in discussions with a range of potential partners, refining the strategy with real-life feedback and experience. 
 

Outcome

SMS provided a standardised, tested, and refined roadmap for channel diversification success, that would result in a significant market presence and increased market share.

SMS provided our client with a standardised framework for identifying potential strategic partners and a roadmap for successful implementation of a channel diversification distribution strategy. Recommendations made have been accepted by senior management, with our client adopting operational processes suggested by SMS in their continued strategy of expansion and market growth.