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VATS: Channel Expansion or Channel Contraction？
內容大綱
Vats is the only listed liquor distribution company on China’s A-shares market. During the COVID-19 pandemic, Vats undertook a channel expansion strategy, expanding its channels and recruiting top talent. However, as China began relaxing restrictions in 2023, the economy did not rebound as quickly as expected. This post-pandemic era brought market contraction and economic downturn, compelling businesses to streamline operations. Now, Vats faces a decision: In the current new economic environment, should it continue its channel expansion strategy and hire more employees, or should it switch to a channel contraction strategy and redeploy its workforce?
學習目標
This case can be used in undergraduate- or graduate-level marketing management or strategy management courses in the modules of marketing and channel expansion strategy. By working through the case and assignment questions, students will have the opportunity to achieve the following objectives:<br><br><ul><li>Understand the external environment that could influence channel strategy</li><li>Analyze the pros and cons of different channels</li><li>Discuss the types of channel conflict and corresponding management solutions</li><li>Identify the rationale for using different channel strategies under different economic conditions</li></ul>