In the computer business in the UK, a channel is a path through which products and services are delivered to customers. This path can involve various intermediaries, such as wholesalers, distributors, resellers, and retailers, who play a crucial role in bridging the gap between manufacturers and end-users.
The channel in the computer business typically starts with the manufacturer, who produces the hardware, software, or services that are to be sold to customers. The manufacturer can choose to sell directly to customers, but this is often not feasible, especially for small and medium-sized businesses. Instead, they rely on intermediaries who have better access to customers and can handle the logistics of distribution and sales.
The first level of intermediaries in the computer business channel is the distributor. Distributors buy products in bulk from manufacturers and sell them to resellers, who then sell them to end-users. Distributors often have a large customer base and can provide valuable services such as inventory management, technical support, and marketing.
Resellers are the next level in the channel, and they can be online or physical stores that sell products to end-users. Resellers typically have a more extensive product range than distributors and can provide more personalised service to customers.
Retailers are the final level in the computer business channel, and they sell products directly to end-users. Retailers can be physical stores, online shops, or a combination of both. They typically offer a wide range of products and services, including warranties, installation, and technical support.
The computer business channel in the UK is highly competitive, with many players vying for a share of the market. Manufacturers must carefully choose their intermediaries and set the right price points to remain competitive. Distributors, resellers, and retailers must differentiate themselves by providing excellent customer service, competitive pricing, and value-added services such as technical support and customization.
Overall, the computer business channel in the UK is a complex egosystem that plays a crucial role in delivering products and services to customers. Manufacturers must carefully navigate this channel to ensure their products reach the right customers at the right time and price, while intermediaries must provide value-added services to differentiate themselves in a competitive market.
