The paper "Analysis Formulation and Implementation of Channel Systems: Case of 3M Canada" is a perfect example of a case study on marketing. After the change of management of the Industrial Business Division (IBD) of 3D Canada Company, the company was mandated to increase its annual growth rate of 2 to 3 % to 12 to 15 % in the next two years. The company was to achieve this independent from the ongoing acquisitions. Some of the recommended plan of actions according to the accounts manager Mr. Yengnaswami was to change the focus of the customer segment from the Original Equipment Manufacturers (OEMs) to Maintenance, Repair and Overhaulers (MROs) since there had been experienced slow growth in the company due to the EOMs segment had matured and there were no more prospects for growth in the segment.
While IBD had not concentrated on the MRO segment with the division experiencing contraction, due to limited brand loyalty and fragmentation. The shift from OEMs to MROs, however, comes with some challenges and opportunities alike. Some of the opportunities included taking advantage of the ever-increasing number of national distributors.
The number of these distributors was growing at a double-digit rate hence reduced unit margins. Taping the niche and special markets emerging from the losing the traditional competitive edge is the other opportunity that larger players can take advantage of it through acquiring process and product skills through making inroads into the customers of the niche players. Acquisitions are the other growth avenues for the company to grow. This is because this has been common while most firms going for consolidations in order to purchases and reducing the number of distributors.
E-commerce was the other opportunity that is available for craps as it gathers ground. This would help in retaining customers through the physical medium of a salesperson (Tybout & Calder, 2010). Though the opportunities for changing from OEMs outweigh the challenges that the process face, there are a number of challenges that hinder the company from realizing its full potential. This includes the business structure of the company that has long contained two segments of customers that can either be reached. Focusing the MROs only would, therefore, mean that a significant number of customers would be dissatisfied and would even quit.
The process of shifting would cause the mean that the additional cost would be incurred while expanding to reach the national figure that is with networks, procedures, and protocol to be followed (Tybout & Calder, 2010). Conflicts in the channel are the other area of concern. The draining of the sales forces without actually realizing the revenue is the other. This would appear in the type of offer to OEM. Logistical problems are the other challenge that is experienced in the process of shifting to MROs.
If the supply chain management is not strengthened through linkages with incentive programs, there would be an experienced an increase in the cost of maintaining large national players.