The paper "Applied Channel Systems: Atlas Copco" is a great example of a case study on marketing. Marketing channels refer to an inter-organizational system of organizations engaged in making produced commodities, experiences and services accessible and available to the end-users for utilization by improving the time, solution, place and possession utilities as defined by Pride & Ferrell (2010). Marketing channels play an important in ensuring the needs, demands, preferences, tastes, and preferences of the end-users are effectively and efficiently met by making quality goods and services available to them. Among the basic functions of marketing channels include representing the brand, acting as the stockist of the products, collecting marketing information that is useful in enhancing the quality of products produced, assuming risks, delivering products to end-users, offering post-sales support and more importantly, adding value (Coughlan, 2001).
Boone & Kurtz (2011) asserts that marketing channels play essential role in marketing strategies including connecting producers to the end-users, generating contact with potential buyers, matching the offer with the needs of the buyer, establishing the most suitable marketing mix, determining the most appropriate and effective price strategy and product strategy and customizing profits.
Dent (2011) indicates that a typical commercial marketing channel flow, products, and services flows from the producer/ manufacturer to the wholesaler, to the retailer (who are defined as intermediaries) and finally to the end-users (buyers). This report seeks to analyze the challenges in the analysis, formulation, and implementation of channel systems as illustrated by the Atlas Copco case study. Question 1 How has Atlas – Copco managed its market entry? Top performing organizations that are able to choose the right market channel in order to penetrate a new market are more likely to succeed in gaining customer loyalty and increasing their profit margins and market shares.
Coughlan et al. (2006) indicate that the main challenge for companies in adopting the right market entry strategy using a marketing channel system is how to identify the most effective and efficient channel and how to successfully and competently implement counter market entry barriers. For Atlas Copco Company, it efficiently and effectively was able to enter the US markets and create a comprehensive sales and service organization by basing its market entry strategy into four distinctive phases.
Its market entry can be described as exceptionally and excellently done. The first phase entailed producing a line of compressors that were adaptable and met the needs, demands, and expectations of the US market and investing in the design innovations in its rotary screw technology that would substitute for the 25h to 300 hp recipes (Rangan, 1987).