The Relationships Between Generic Strategy And Channel Power

This study aimed to the exploration of relationships between generic strategy and channel power on the basis of former researches on manufacturer's generic strategy, sources of channel power as well as relationships between generic strategy and channel control. Meanwhile, we made thorough explanations on why and how manufacturers' generic strategies decide their possession of channel power. Case studies and questionnaire survey were used in our research work and one hundred and seven manufacturers were investigated. Our hypothesis was largely supported by the statistics. After revision of our hypothesis we made the conclusion as following:(1) Significant correlations exist between manufacturer's generic strategies and sources of channel power.(2) Manufacturers' generic strategies affect sources of channel power by ways as following:1. Factor of relation in cost-leadership strategy decides how much manufacturers possess reward power as well as focus strategy does. However, focus strategy affects reward power negatively.2. Both differentiation strategy and factor of learning in cost-leadership strategy give positive influence to the possession of coercive power by manufacturers. On the contrary, manufacturers decline to use coercive power as power strengthened.3. Manufacturers' abilities to control channel members with expertise and information power can be strongly strengthened when they choose the strategies of differentiation and focusing.4. Technology factor in differentiation strategy can bring more power of legitimate to manufacturers in broad sense.5. Referent power establishes when manufacturers build an attractive and wide-spread C.I. (corporation identity), or choose an extremely narrow product and market scope.