If your company reaches customers through an indirect channel, understanding how it is impacted by external influences is essential. Analyzing the effect of changes in macroeconomic and technological factors can help you gain market share, displace competitors, increase revenue and optimize investment performance—among other perks.
If you decide to pursue any of these potential opportunities, it is likely that your business will have to change some of its processes or even its operational model. When this happens, the channel technology infrastructure that supports existing processes and models will have to adapt.
Responding to external factors may require a dramatic internal transformation. It may not be for everyone, but if your company has the muscle and appetite for them, it may just help you outperform the competition.
Let’s dissect each factor in turn.
Natural Factors Disrupt Demand and Supply
Raging wildfires in Australia and California, the Philippines’ volcanoes, the floods of Indonesia and earthquakes in Turkey all have a similar outcome: they disrupt demand and supply.
Such natural catastrophes prevent access to resources, destroy property and infrastructure and displace populations on a large scale. As a result, businesses selling in the affected areas have to manage a shift in regional demand. Meanwhile, companies sourcing from the impacted regions must handle potentially limited supply—without warning and very quickly. The increased tempo of cataclysmic natural events has prompted companies to examine ways to mitigate the risks of disruptions.
What does this mean from an indirect channel perspective? Here are some thoughts on what brand owners should consider: