Channel Champions

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If product is no longer king, what is? Companies like Dell, Lexus, Wal-Mart, and Amazon have discovered that channels are the new drivers of economic success. The methods of marketing and distribution have become crucial for customer satisfaction, market share, revenue, and profitability. It’s not just about what you sell, but how you sell it, and there’s no turning back. In this insightful analysis, Booz Allen & Hamilton consultants Steven Wheeler and Evan Hirsh examine various companies thriving in a channel-driven economy. For instance, they highlight Dell's success, which stems from its direct-to-customer sales channel. By allowing customers to order customized computers, Dell minimizes inventory and cuts costs by eliminating the middleman. The authors also explore how Lexus entered the luxury car market by prioritizing customer service, exemplified by dealers personally notifying customers about recalls. Additionally, they discuss Amazon.com’s innovative approach to e-commerce, showcasing the evolution of online retail. Wheeler and Hirsh, both partners at Booz Allen & Hamilton, draw from their extensive real-world consulting experience to illustrate these changes. Their insights make this analysis essential for anyone seeking to navigate and succeed in today's channel-based economy.