Brightfield has been engaged to model and analyze the client's dealer channel. The channel is under stress from new competition and rapidly expanding markets. The client's sales and support staff is being stretched.
The client is a network equipment company who is considered a long-term market leader. The product distribution depends on the channel of dealers who maintain long-term relationships with the customers. The product has a 3 to 5 year life cycle. The channel infrastructure is considered as important to success as the product and vendor capabilities.
New markets in a traditional channel not previously served by the client are beginning to emerge and greatly expand the client's available market. The dealer network is demanding new and more resources for the market expansion. Resource allocation is now essential.
The expanding market is attracting new competition. The new entrants are attempting to poach the client's dealers. Evaluating potential defectors and the primary dealer motivations is now imperative.
The perception is that the client's products are under intense downward price pressure. The analysis must also determine the existence and magnitude of the perceived price pressure.
This data table displays the features, their rank and their weight in projecting the order input for all dealers taken as a whole. This table, along with the table for the dealers analyzed individually, is the basis for many of the results.
This chart is interactive. Scroll the chart screen to observe all feature importances.
The analysis concluded with accurate forecasts of both trend and near-term order input to within 5% mean average percentage error ('MAPE'). The client can accurately locate high and low performers to remedy long and short-term performance. The client can now efficiently allocate resources to those with the best opportunities or in need of support to remedy near term short-falls.
The analysis of the motivating features for each dealer revealed that price in the short-term was not a primary influence, except for those dealers who operated as distributors without forming long term relationships with the customer. Accordingly, the client should not respond to the competitive pressure with price reductions.
The analysis revealed that the client's competitive positon centered around its ability to execute and its market presence. The client should focus on the dealers identified as vulnerable to poaching but not significantly alter its long-term distribution strategy.
The declining trend in the last year while expanding new markets are available implies the client's expansion efforts have not been successful. Additonal study to identify the dealers with the best ability to open new markets needs to be conducted.