Channel conflict (MC, unit 5)

Breakdown in levels of cooperation likely, tends to happen due to following 3 reasons:

1. Competing goals
2. Domain differences
3. Perceptions of reality

1) Competing goals
Upstream member changes strategy so goals are difficult for downstream members to support e.g. retailer trying to increase performance and lower stock levels conflicts with manufacturers goal to increase them

2) Domain differences (field of function)
Member perceives another to operate out of previously agreed area e.g. wholesaler selling directly to end-user or intermediary selling another manufacturers products
E.g. Zoo sells online and in it's own shops. A key supplier has banned any online sales of its products as intends to sell directly to consumers.

3) Perceptions of reality
In absence of strong cooperative relationship, individuals focus on different business elements e.g. manufacturer focusing on processes, dealer focussing on customers