CHANNEL STRATEGY

As a company’s portfolio of products grows through new product launches or acquired products, it may find that its channel strategy is no longer optimal. Some channels within a given geography may be more suited to a distributor model, while others may require the full marketing and sales support to be competitive.

A complex financial model can dissect the various channels and create a unique business model by channel. Pricing and cost considerations as well as risk of product spillover across channels can be modeled with valuations determined by strategy and channel. This information enables management to pursue an optimal strategy, thereby enhancing shareholder value.