Klient Vincent Bulaga

Case study #1

Oracle Corporation- Managing channel conflict

Abstract:

This caselet describes the conflict between the direct sales force and the channel partners of oracle
corporation. It gives the reasons behind such conflicts and discusses the measures that Oracle adopted
to reduce such conflicts. While oracle was still trying to improve its image with the resellers, it took over
PeopleSoft, another software company. The caselet also mentions the apprehensions of the partners
over this new development.

Issues:

>Reasons behind channel conflict

>Methods of channeling conflict effect

>Challenges in channel management in case of a takeover/merger.

Discussion:

1. Oracle Corporation has its issues and concerns in relation to its financial and management issues
particularly on Businesses counting their pennies have slowed purchases of Oracle's application
software, including its ERP and CRM products, over the last year or so. But the surprise in the Q1
results was the slowdown in Oracle's core database and middleware products (down 22 percent
or 19 percent in constant currencies) that account for a big chunk of the company's revenue.
Catz blamed the dip in database sales on slower sales through OEMs and ISVs that bundle
Oracle's database with their own products for resale. Oracle just began shipping a major
upgrade of its database software, Oracle Database 11g Release 2, that the company and its
channel partners say could spur sales.
2. The acquisition of PeopleSoft company by Oracle Corportation according to Wharton faculty
members say Oracle’s bid to acquire PeopleSoft reflects several realities: Ellison’s penchant for
the dramatic and the inevitable forces of consolidation that arise when industries begin to
mature, as is happening with companies that sell business software. What is unclear, the faculty
members say, is exactly why the proposed deal was initiated and whether there is a reasonable
chance the two firms can be consolidated successfully. They also say it is unusual that Oracle did
not offer more money for PeopleSoft in which historically has been the case in most attempted
hostile takeovers and that Oracle’s less-than-stellar offer may leave PeopleSoft shareholders
looking for a white knight to come to the rescue with a better deal. In the end, securities
analysts, software customers and other observers may need an oracle of their own to figure out
 how this hardball move by Ellison will reconfigure a $36 billion industry that is somewhat
obscure and does not quite capture the imagination of the public, yet is nonetheless important,
lucrative and growing. Raw emotions could play a big role in the days to come, given that the
enterprise software companies comprise a tightly knit group where everyone seems to know
everyone else and personalities and friction are often not far from the surface, according to the
Wharton experts.
Case study #2
Case study: Nikon's sales and distribution strategy in India.
Abstract:
In may 2007, Nikon corporation, one of the world's leading manufacturers of optical and
imaging equipments has entered India by setting up Nikon India Private Limited (Nikon India) as
a wholly-owned subsidiary. Nikon India had witnessed good sales growth and by early 2009, had
established market leadership in he premium DSLR camera segment and also cornered a 5%
market share in the compact camera segment. In the financial year 2009-10, the company was
ramping up its presence in the country by expanding its retail presence with shop-in-shop retail
model. It as also putting up a sales organization in place that included a 200-strong sales force.
With these channel development initiatives, the company expected to double its market share
in the compact camera segment and further considerate its leadership position in the DSLR
camera segment by he end of 2009-10.
Issues:
>Sales and distribution strategy
>Sales organization
>Channel development
Discussion:
1. Nikon aimed to make its sales double by 2010 by reaching to 1,200 retailers as itsdistributers
increased by 28 which led in market competition as there were manycompetitors for Nikon like
Samsung, sony,canon,Kodak & Olympusd. Nikon also aimed to target the smaller audience by
moving from nationaldistribution network to region specific distribution to make it accessible to
itscustomers through shop in shop stores. The Shop focused more on the visuals of the shop and
visuals of the camera toattract the customers by introducing a feature called as COOLPIX. They
focussedmore on the professional photographers and armatures. Nikon also set its
photography schools which encouraged youth to take interest inphotography. Nikon made
famous celebrities like Priyanka Chopra and Ashton kuctcher as theirbrand Ambassadors to
increase its consumer by making it a brand. Publicity done through social and print media like
TV, radio & newspapers. Nikon also hired Technical & sales workforce and trained them so that
they canunderstand the product well and are able to satisfy its customers.
2. Over the past many years, the photography industry has experienced tremendous revolutions
that have been brought as a consequence of the changing trends in technology as a result of
changing tastes and preferences by customers. This has seen many companies compete to
outdo each other in terms of complexity in technology leading to the introduction of the digital
cameras (Amazon, 2012). Currently, the company has a chain of products that range from
digital/film cameras lenses such as ophthalmic lenses, binoculars, telescopes, laser rangefinders,
 IC/LCD steppers and scanners, optical materials and equipment and surveying instruments.
Some of the rival companies in the film and photography market include Pentax, Panasonic
Lumix, Olympus, Sony, and Canon. Out of this, Sony is the biggest competitor with their Sony
Alpha DSLR-A900 camera. However, the Nikon D800E Digital SLR Camera remains to be the best
(Amazon, 2012). This kind of innovation has seen many companies compete to outdo each other
in terms of complexity in technology leading to the introduction of the digital cameras.
3. (a) Niikon analysed its audience and targeted them accordingly by branding the product&
making well known celebrities Chopra and Ashton kuctcher as their brand Ambassadors to
attract & increase its consumers by focussing more on the visuals.
(b) Nikon created its awareness through social, print media like TV, radio andNewspapers and
also by running workshops which attracted the youth audiencemore.
(c) As Nikon became one known popular brand, it created more employment in salesand
technical department where hiring and training was provided by the companyto build strong
customer relationships
4. (a) Track Sales and feedback of the customers.
(b) Track the number of sales according to the area and launch the product dependingupon
area to build strong long term customer relationships by making themunderstand the
product value and durability.
(c) Determine the target audience to create a need for the product with the customer.
(d) Reach to Tier 2 & Tier 3 cities and educate them about the product through social,print
media such as pamphlets, newspapers, magazines, hoardings, bill boards, localTV channels
& local radio channels.
(e) Run Promotional events and workshops in schools, malls & famous market places toattract
customers , educate customers and providing them in shop trial services sothat they can get
aware and pay interest in the product before purchasing.
(f) helps in developing the customer’s trust in you and builds long term customer relationships.
(g) Tie up with online platforms & local Retailers for promotion and discount to attractthe
customers with cost effective and lucrative deals (like cash back, discount ondifferent modes
of payment, buy 1 get 1 free offers)
(h) Conducting more number of TV advertisements especially in between sports match.
(i) The education and awareness provided to the customers about the camera will notonly stay
limited to the visuals but also on its technical functions so that thecustomers can use the
product with much ease.
(j) Focus more on making post sales services more effective and accessible tocustomers
especially in small cities in case of damage or repairs

Case Study #3.

Case study: Apple Computer- The reseller conflict

Abstract:
 Apple Computer started its own retail stores in 2001. At the same time, the company followed
channel strategies that were aimed at eliminating the traditional resellers and promoting the company-
owned stores. This caselet discusses these different methods and their impact on the resellers. It also
discusses the lawsuits filed by resellers against Apple resellers. It also discusses the lawsuits filed by
resellers against Apple.

Issues:

» Importance of channel relations

» Impact of channel conflict

Discussion:

1. May 2001, Apple opened its first retail store in a suburb of Washington D.C., and went on to
open several other such stores across the US. In 2003, Tom Santos, an Apple reseller, filed a
lawsuit against the company accusing it of showing unfair preference to its own retail and
online stores while ignoring reseller stores during the shipment of new goods. He also accused
the company of following unethical business practices with an intention to divert sales to its
own stores. A number of other resellers also joined him subsequently. As of June 2005, the
plaintiffs were waiting for the allocation of a trial date at the Superior Court of the county of
Santa Clara, California.
2. MACadam Computer, Inc. (MACadam), located in San Francisco, was a long time authorized
Apple reseller. Tom Santos, (Santos) president of MACadam, complained that ever since Apple
had started its own stores, it had become difficult for him to procure iBooks with CD-
rewritable/DVD combination drives from the company. By the end of March 2003, Apple had
opened more than fifty stores all over the US, even as the total number of resellers who filed
lawsuits against Apple went up. Apple signed yearly contracts with its resellers, making it
mandatory for them to renew the contracts every year. During March 2003, as the old contract
expired, Apple issued new contracts to its resellers. The due date for signing the contracts was
fixed as March 25, 2003. Thinksecret.com obtained a copy of the contract and published some
of the important sections of the new contract on its website.
3. It is no secret that lately Apple has launched many products that are defective. Although the
company continues to insist that its products are of the highest quality, the following is just a
brief list of the problems its most recent products have had: "Bendgate" for its iPhones and
iPads where the products are so thin that they bend at the slightest pressure, the "Butterfly
Keyboard" that has made some of its MacBooks inoperable until they are fixed by having to do
major repair and leaving customers without a computer for days or weeks at a time, the IOS
 software updates that have converted some iPhones into "bricks' that cannot even be turned
on, and the failure to launch the Airpower that was supposed to be able to charge all of its
latest wireless products at one time. The above list points to the main problem Apple is facing
today - its Quality and Assurance testing. Whether it is not doing appropriate Q&A because it is
rushing products to market or whether it is having difficulty managing its China factories, the
fact that Apple cannot launch 100% defect-free products and continues to deny there are
issues points to a corporate culture of deniability instead of one that takes action to fix issues.
This is undermining the general public's trust and is probably one of the reasons why customers
are migrating to Microsoft, Samsung, Huawei, and other companies.
4. CUSTOMER SERVICE FOCUS- If Apple had maintained the same Customer Service focus over
the past few years, the product quality I just mentioned would not be such a large issue. To
illustrate this point, let me share with you two personal experiences. The first happened when I
bought the first iPhone in 2007. This iPhone, like many others I bought afterward, had an
overheating problem. In other words, the phone would get too hot to handle. I immediately
brought this first iPhone to the Apple store where I had bought it. After asking me what the
problem was, the "Apple Genius" (as they call employees), scanned the serial number, took the
iPhone from me, and handed me a new one at NO CHARGE. The whole transaction took about
five minutes. On the other hand, when my son needed to replace his screen in his iPhone this
past December, we had to check in, wait thirty minutes, explain the issue and hand the iPhone
to the Genius and come back one hour later to pick it up. Since I had the bought the Apple Care
plan for it, the cost was $29.00. However, the Genius explained that since this is the second
time this happened, the next time the cost would be $149.00. Although this is a much lower
cost than buying a new iPhone, the Apple Care plan for his phone costs $149.00 and, unless you
take full advantage of it (as I did), it translates to pure profit for Apple.