Channel Conflict
A situation where different sales channels compete against each other for the same customers, often leading to tension and inefficiencies that need to be managed strategically.
Implications
Disputes or issues that arise between different sales or distribution channels within a company, often due to competition for customers, pricing discrepancies, or misaligned incentives, potentially harming overall performance.
Example
Example: A technology firm faces channel conflict when its online store offers lower prices than its retail partners, leading to tensions and reduced cooperation with brick-and-mortar stores.
Related Terms
Different from competitive conflict, which occurs between companies, channel conflict happens within a company�s distribution network, between its various sales channels.
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