The New Online Paradigm: Channel Disruption

2 years ago  •  By  •  0 Comments

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Many small businesses have acknowledged the need for an online presence of some kind and some still find it awkward or mysterious. While many still struggle with their website, email or social media marketing, another major disruptive development is under way: Distribution Channel Disruption.

The consumer goods distribution system has been breaking down for decades. 

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  • Channel marketing provides volume advantages
  • Technology is lowering costs
  • The Internet is a disruptor
  • The case study of Amazon
  • Channels that may survive

The removal of friction and flattening of the distribution, the efficiency of delivery and the universal reach of the Internet selling proposition changes everything. Channel disruption will continue to occur for some time, until a level of equilibrium occurs yet again.

Manufacturers must struggle with which combinations of channels to use based on end user needs, while dealers and retailers must fight to be relevant to manufacturers for installation and service and perhaps some elevated shopping experience included.

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