Thesis Open Access

Assessing The Challenges Of Indirect Distribution Channels: The Case Of Ethio Telecom

Bante, Getachew

The purpose of this study is to Assessing the Challenges of Indirect Distribution Channels: The Case of Ethio telecom based on assessing the prior experience of distributing the physical voucher card and SIM card on territory confined bases, basic challenges of distribution channel, main reason for terminating of distribution agreement, the level of conflicts of channels in the distribution activities and support of information system on distributors. In light of this objective, the study employed descriptive research and simple random/probability sampling design employed based on the nature of the target population. Consequently, the study selected a sample of 99 individuals or respondents from 252 populations. The data analyzed on quantitative basis using descriptive statistics. The analysis and finding shows the basic challenges that affect the distribution channel in distributing voucher cards and meeting their targets in SIM card sales like the shorter time in sales, consideration of distribution task as a secondary business, lack of distributors capacity in finance and skill and delay in on-time delivery. The distribution agreements were terminated due to lesser commission to distributors, lack of demand based allocation of voucher cards, less profit for distributors/sub distributors. Lack of motivation and support from Ethio telecom to its channel dealers, special treatment for national distributors, lack of enough demand and penalty on contract violation is applied only on distributors are the main reason for conflicts of channels in the distribution activities. Lack of support for distributors to manage their orders and the system to support distributors and low level of IT knowledge of distributors to implement the system are challenges on distribution activities. Basing on the study, the researcher recommends the Ethio telecom and Distributors should have maintain automated distribution system, provided the credit facility and training, support for distributors, maintain penalty on contract violation for both distributors and Ethio telecom, maintain equal treatment for all distributors and considering the distribution task as a primary business

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