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SDM Group Assignment
SDM Group Assignment
There were various points that were put up in the class to support as well as negate this idea.
YES, THE DEALERSHIP SHOULD BE GIVEN
Alexandros have an existing network and his son
can leverage from this fact.
Deal can be done in a smooth and simple way.
Availability of capital is there.
May create issues for other dealers if not given the
deal.
Expertise in the similar field is already there in the
family.
But, having an existing network or making the deal smooth and simple are not that BMW is
looking for. It is looking for a fair process to give equal chances to all the interested parties so as
to have a good image of itself. Also, having a stereotype or bias against the son due to the
incompetence of his father is totally not justified. So, a fair process with proper evaluation
criteria needs to be carried out in future to decide on the channel partner.
Criteria to choose a channel partner
There are various criteria to choose a channel partner and it depends upon the type of business
environment and objectives of the firm. These are very important and any company should be
careful in deciding this. Some of these are listed below.
Among all these, finance or capital availability is the most important criteria to select a channel
partner as rest other factors like manpower, infrastructure, expertise etc. can be taken care of by
capital. One may not have all of these characteristics, so some kind of trade-off is done while
selecting a partner. Even if someone possess all these characteristics, there should be some
incentive for him to become your channel partner.