Research On The Channel Strategy For Antiwear Additives From Company A

With the promotion of some national strategies such as the “Mass Entrepreneurship and Innovation”,“Made in China 2025” and “the Belt and Road Initiative”,many technology-based companies are springing up,and they shoulder the historical mission of achieving an innovation-driven production and optimized industrial structure in the New Normal of China’s economy.However,it is common for those companies to attach more importance to technology over market,and thus failing to establish effective distribution channels in a timely manner,which would result in the stockpiling of unsold products as well as a slow business growth.Company A is a startup company that specializes in the field of wear resistance and antifriction.Although the company masters the core technology of friction modifiers and world-class manufacturing capability,their independently developed anti-wear additives have received a poor sales performance after releasing to the market due to channel distribution problems.Therefore,it is crucial for Company A to establish a well-functioning,effective and stable channel system to boost its sales.By utilizing tools such as the five-force model and SWOT to probe into the industrial characteristics,development process,market positioning and competitive structure of Company A,this paper has carried out an in-depth analysis on the company’s internal environment,and identified the problems and causes of its channel system.By means of channel-related theories,the paper has not only put forth a proposal for Company A,which is based on profit-motivated management and aims at building offline retail channels with the aid of mobile Internet technology,but also established an evaluation framework for it from three dimensions,i.e.cost-effectiveness,adaptability and controllability.After drawing a conclusion on the optimized channel strategy for Company A,the paper has provided suggestions on distribution channels for all technology-based startup companies,and briefed about the future research directions on the channel strategy for Company A.