Definition

Rosenbloom (2013) defines channel conflict as “a situation in which channel partners are in disagreement over goals, roles, or rewards.”

Introduction

When too many cooks handle the same recipe, chaos follows. Channel conflict arises when distributors, retailers, or e-commerce partners compete for the same customers.

Explanation

Types of Conflict:

Horizontal – between same-level members (two retailers).

Vertical – between different levels (manufacturer vs. distributor).

Multichannel – between online and offline arms.

Resolution Methods:
1️⃣ Clear role definition.
2️⃣ Profit-sharing and incentives.
3️⃣ Joint planning and communication.

Key Takeaways

Conflict is natural but must be managed constructively.

Transparency and fair reward systems prevent disputes.

Technology helps track partner performance objectively.

Real-World Case

Sony faced conflict between its retail partners and direct online store; it resolved it by offering exclusive SKUs for each channel.
Reference: https://www.sony.com