Obo Distribution Channel Conflict Management

Lightning protection industry in China has nurtured for more than a decade, which has entered a period of rapid development. With the industry's rapid growth, more and more companies have joined this industry. As the lightning protection products belonging to the second industrial products, with the character of using in wide range, low-value per-products and decentralized in procurement. So, efficient distribution channel has becomes an important means for lightning protection products manufacturer which enhance the competitiveness and market share. But refer to the management of distribution channels, channel's conflict run through it. A high level of channel conflict can lead to sharp drop in the efficiency of distribution channels. So, The management of channel's conflict has become a key problem for channel managers who needed to resolve the issue.This article takes the OBO company's channel conflict for specific subjects, analysis according to the OBO company's sales and Chinese lightning protection industry condition in recent years, combined with the author's experience in the field of lightning channel management, as well as channels conflict management theory, provides a reliable basis in order to solve the OBO company Channel conflict issues.As to the management of the OBO's channel conflict, by using of systems analysis and empirical analysis, this article divided the channel conflict to two categories by the relationship of channel members: horizontal, multi-channel conflict and the vertical channel conflict, and then, analysis the causes of the channel conflict by using game theory, marketing theory, and strategic alliances that based on SCM theory. Then, put forward the framework and step of channel conflict management that OBO company should be take. The paper stood as a manufacturer of OBO's view, from the view of channels behavior, supply chain and channel structure, has put forward a series of strategies to prevent and control the OBO company's channel conflict: to the horizontal conflict and multi-channel conflict, can use channel power discriminately and reasonably after divided the merchants by using distributor portfolio analysis. To the vertical channel conflict, can establish the vertical strategic alliance that including manufacturers and merchants. Then, established the mechanism of regulating, information sharing and benefit sharing to improve the relationship of channel members, governance the vertical channel conflict. By using the measure above, manufacturers and merchants can achieve a win-win results. These strategies not only fit for the management of OBO company's distribution channel conflict, but also for many other companies.