Class: MW 1:00 PM – 2.15 PM
Dr. Vishal Kashyap
Case study; Time Warner/Viacom
1. What is the channel arrangement between Viacom, Time Warner, and consumers? Who are the intermediaries? The channel arrangement between Viacom and Time Warner is one of dual distribution in that they both offer the same product to consumers. The intermediaries are the stations that they offer the service.
2. What is the Channel Conflict between Viacom and Time Warner? The channel conflict is that of a vertical conflict, since Time Warner is below Viacom in this and Viacom has sway over what happens to them. However in this case, Time Warner was able to regain the upper hand by reaching out to its consumers, hoping they made up for what the company itself could not threaten.
3. Obviously the conflict between Viacom and Time Warner has strained their relationship. If you were in charge of one of these companies, what steps would you take to improve their channel relationships? In my opinion, I would take the approach that is used so often in history. When people who have a power to control others would have a conflict and wish to resolve it they would, (well often they would offer their children in marriage) but what I mean is the same kind of thing only not with people but with products. Offering to make a profit off of each other’s success is a huge motivator for managers of companies to come to terms with each other once again, and work hard together because working together can lead to more profits, which in turn lead to more profits from each other.