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New GTDC Report Highlights Effective Methods for Building Optimal Channel Strategies
The Global Technology Distribution Council (GTDC) has released a groundbreaking new industry study titled "Building the Optimal Distribution Strategy." This comprehensive guide provides insights and valuable best practices for evaluating market and channel coverage needs and determining which types of distributors provide the best fit for technology suppliers. Former global channel chief and partner route to market specialist Donna Grothjan...
The Global Technology Distribution Council (GTDC) has released a groundbreaking new industry study titled "Building the Optimal Distribution Strategy." This comprehensive guide provides insights and valuable best practices for evaluating market and channel coverage needs and determining which types of distributors provide the best fit for technology suppliers. Former global channel chief and partner route to market specialist Donna Grothjan led the development of this member-inspired GTDC project, adding her personal knowledge and experience creating and managing distribution strategies, as well as gathering and sharing insight from respected industry peers and subject matter experts.
Distribution remains the most cost-effective route-to-market for technology suppliers. That value is rising rapidly in the cloud era as emerging and legacy vendors look to scale sales, support and other operations around these virtual offerings without requiring onerous investments in resources and training. Leveraging distributors to accomplish those objectives provides a greater return on those limited funds and allows technology companies to expand more readily into new markets. A common challenge for vendors is determining the mix and number of these partnerships required to achieve their objectives, which is addressed in this GTDC report.
"One of the most critical responsibilities of a channel leader is ensuring their company achieves strong and profitable sales growth and building an optimal distribution coverage plan should be a key focus of their overall business strategy," says Grothjan. "Successful channel vendors regularly evaluate their objectives, company characteristics, and market maturity, and then match those variables to each current and potential distributor's unique value proposition and capabilities to ensure resilient, scalable outcomes."
Rationalizing channel ecosystems is imperative in today's highly competitive technology sales environment. When vendors have excess distribution capacity, more teams will be competing for a share of revenue, which negatively impacts margins and investment capabilities for all alliance partners. Optimization of distribution channels alleviates those concerns.
