The market economy has recently developed, globalization trend leads to increasingly stiff competition, forcing businesses to use their resources effectively for their cost reduction, quality enhancement, design improvement and create new different products with high competitiveness, using promotion tools to attract and stimulate customers needs. However, in fact, during this competitive period, creative advertisement strategies, promotions, sale discounts have only shortterm advantages because other businesses are quickly following, making them soon ineffective. Therefore, businesses are now focusing on distribution channel development to achieve longterm advantages. A completed distribution channel system and a right distribution policy will help companies succeed in business, ensuring large product distribution and delivery to target markets. At the same time, through an appropriate distribution channel system, companies will have competitive advantages in the market. Computer products and accessories are always a vibrant business sector and have had a high market share ever. It is the industry with not too large capital but high profits, so their market has been constantly growing, which means that more and more businesses are taking part in this field. On the market, there are many faked computer products and accessories of other famous brands or bad quality ones, affecting the reputation of other businesses. Therefore, the development and control of distribution channels is extremely important. Strict control of distribution channels, one of factors determining the success of each business, will help companies distribute goods better to consumers. Through the market research and the reality at Logitech Vietnam, I realized that some issues were still limited in the current distribution channel system and aware of the importance and practical role of the distribution channels for the companys business activities. On such basis, approaching from a modern marketing perspective, I chose the topic: Distribution channel development of Logitech Vietnam.
ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - CAO THANH THUÝ DISTRIBUTION CHANNEL DEVELOPMENT OF LOGITECH VIET NAM PHÁT TRIỂN HỆ THỐNG KÊNH PHÂN PHỐI CỦA LOGITECH VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2021 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - CAO THANH THUÝ DISTRIBUTION CHANNEL DEVELOPMENT OF LOGITECH VIET NAM PHÁT TRIỂN HỆ THỐNG KÊNH PHÂN PHỐI CỦA LOGITECH VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG HÀ NỘI - 2021 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… CONTENT LIST OF ABBREVIATIONS i LIST OF TABLES ii LIST OF FIGURES iii PREFACE CHAPTER 1: THEORETICAL BASIS OF DISTRIBUTION CHANNEL STRATEGY DEVELOPMENT 1.1 Definition of business strategies and procedure of strategy development 1.1.1 Business strategies 1.1.2 Development process of distribution channel strategies 10 1.1.3 Method of strategy development and selection 19 1.1.4 Tools for strategy development and selection 20 1.2 Definition of distribution, distribution channels, roles and functions of distribution channels 24 1.2.1 Definition 24 1.2.2 Roles and functions of distribution channels 26 1.2.3 Analysis of distribution system in Vietnam 28 CHAPTER 2: DISTRIBUTION CHANNEL STRATEGY DEVELOPMENT OF LOGITECH VIET NAM 36 2.1 Formation and development history of Logitech 36 2.1.1 Summary of Logitech International S.A 36 2.2 Distribution channel strategy development of Logitech Vietnam 40 2.2.1 Mission, vision and objectives of Logitech Vietnam 40 2.2.2 External factors impacting to distribution channels 42 2.2.3 Internal factors impacting to distribution channels 49 2.2.4 Strategy development and selection 56 CHAPTER 3: PROPOSAL OF SOME SOLUTIONS FOR DISTRIBUTION CHANNEL STRATEGY DEVELOPMENT 68 3.1 Conclusion and findings through the study 68 3.1.1 Achievements 68 3.1.2 Disadvantages 68 3.2 Prospective forecast and strategic viewpoints of distribution channel development of Logitech Vietnam 69 3.2.1 Prospective forecast of distribution channel development .69 3.2.2 Strategic viewpoints of distribution channel development .70 3.3 Proposals of some solutions for distribution channel strategy development 71 3.3.1 Solutions for human resource development 71 3.3.2 Solutions for market development 73 3.3.3 Solutions for market penetration .73 3.3.4 Solutions for product differentiation .76 3.4 Some recommendations for distribution channel strategy development 76 3.4.1 Some recommendations to Logitech Vietnam 76 3.4.2 Recommendations to the Government 78 CONCLUSION 79 REFERENCES 80 APPENDIX LIST OF ABBREVIATIONS TNHH Company Limited TM Trading GS.TS Prof.PhD PGS.TS Assoc.Prof.PhD CNTT Information technology i LIST OF TABLES Table 2.1: Classification of customers base on their income by AC Neilsen 40 Table 2.2: INCOME STATEMENT WITHIN 2017 - 2019 .51 ii LIST OF FIGURES Figure 1.1: Development process of distribution channel strategies 11 Figure 1.2: Company value chain .18 Figure 1.3: Analysis frame of strategy development 19 Figure 1.4: Structure of distribution channels 31 Figure 1.5: Distribution model of Razer products 34 Figure 1.6: Current distribution model of Logitech Vietnam 35 Figure 2.1: Organization chart 37 Figure 2.2: GDP growth within 10 recent years .44 Figure 2.3: Revenue base on sectors 49 Figure 2.4: Revenue based on channels 50 iii PREFACE Necessity of the thesis The market economy has recently developed, globalization trend leads to increasingly stiff competition, forcing businesses to use their resources effectively for their cost reduction, quality enhancement, design improvement and create new different products with high competitiveness, using promotion tools to attract and stimulate customers' needs However, in fact, during this competitive period, creative advertisement strategies, promotions, sale discounts have only short-term advantages because other businesses are quickly following, making them soon ineffective Therefore, businesses are now focusing on distribution channel development to achieve longterm advantages A completed distribution channel system and a right distribution policy will help companies succeed in business, ensuring large product distribution and delivery to target markets At the same time, through an appropriate distribution channel system, companies will have competitive advantages in the market Computer products and accessories are always a vibrant business sector and have had a high market share ever It is the industry with not too large capital but high profits, so their market has been constantly growing, which means that more and more businesses are taking part in this field On the market, there are many faked computer products and accessories of other famous brands or bad quality ones, affecting the reputation of other businesses Therefore, the development and control of distribution channels is extremely important Strict control of distribution channels, one of factors determining the success of each business, will help companies distribute goods better to consumers Through the market research and the reality at Logitech Vietnam, I realized that some issues were still limited in the current distribution channel system and aware of the importance and practical role of the distribution channels for the company's business activities On such basis, approaching from a modern marketing perspective, I chose the topic: "Distribution channel development of Logitech Vietnam." Overview of last studies During my thesis, some relevant studies for reference include: Some foreign studies: The study of business strategy and policies by Smith et al (2003) provides essential knowledge, from strategic concepts and business strategies to analyzing the business environment in large corporations and member companies, organize the implementation, examine and evaluate the implementation of business strategies and policies In which, the study focuses on the training of business administration staff at the large, small and corporate level This shows the importance of human resources in any business strategy, whether at corporate or national level The State and enterprises need to quickly coordinate training in order to have a team of entrepreneurs and managers at a level on par with the times Doing this helps businesses and countries seize opportunities and increase the competitiveness of Vietnamese businesses in the open market David (2015) with research on Strategic Management: arguments and situations rose that it is necessary to create initiative and make a difference in competition By targeting activities consistent with existing capabilities and development prospects, including ambitions for global business development; rational mobilization and allocation of resources; predict market demand, fully realize the opportunities and challenges, and know how to make your business different with special competitive advantages to be able to actively win competitive relations At the same time, businesses can also fully actively adjust their business strategy to ensure that it is always in line with the constant fluctuations of the domestic and international business environment According to this study, the most basic benefit that strategic management brings is the initiative and victory in the competitive relationship in the target market of the enterprise With Aaker's study on Business Strategy Deployment (2007), the author stated that, in order to successfully manage a business, it is essential to have a business strategy The key is to set up a governance system so that the administrator: Get a clear vision of their work; Can embrace and understand the dynamic environment of Continue to apply a reward policy to the direct customer contact department and support departments in Logitech Vietnam to motivate and stimulate the dynamics of working for each department Having a good remuneration policy (such as raising salaries ahead of time or advancing ) for good employees to ensure a stable workforce At the same time, through them, it will stimulate the working spirit for the remaining staff of Logitech Vietnam Building working environment: The departments at Logitech Vietnam generally work with each other Therefore, the director and department heads need to maintain a friendly and collaborative working environment to improve working efficiency while promoting collective strength 3.3.2 Solutions for market development Logitech Vietnam plans to open more brand stores, expand industrial zones and set up manufacturing plants in Hai Phong In addition, Logitech also plans to build service centers in major cities When the factory is expanded, Logitech Vietnam will save a lot of costs, especially in the shipping process, helping products with cheaper prices, being able to compete fairly with products from Taiwan Logitech Vietnam also plans to open more stores in supermarkets, especially book stores, and in shopping malls Currently, businesses, corporations with many branches operating across the provinces, banks, and schools increasingly expand the need to organize online meetings and seminars to save travel costs Logitech grasped this trend, so it soon launched the online meeting product Therefore, in the coming time, Logitech Vietnam will focus on exploiting this product and market segment 3.3.3 Solutions for market penetration Product solution: Mainly focusing on the motto "advanced technology" with the latest technology products and services However, Logitech Vietnam needs to focus on the real needs of customers in each specific stage by promoting core competencies in leading 73 technology, customer service first and foremost combined with inherent strengths to build Logitech Vietnam on growing In short, Logitech Vietnam needs to focus on products with the following characteristics: Technology trend is rapidly, strong and compactly improved Consumption trend of consumers is increasing in the future Products with the highest rate of return Products are liked by consumers as well as make a difference in consumer perception Products must create the strength of Logitech Vietnam development compared to other competitors Price solution: Price policy of Logitech Vietnam is currently limited due to the conflict between Reseller prices and retail prices, in which agent prices must follow the cheapest policy, while retail prices cannot be cheaper to compete with agents Therefore, depending on each stage of operation with the priority policies to develop each individual customer segment, Logitech Vietnam will offer reasonable policies to reconcile the above contradictions In the current period, Logitech Vietnam focuses on developing the dealer customer segment, so it must focus on the low-cost policy for agents, in addition, direct customers are the main object of Logitech Vietnam in the future Therefore, we still have to try to focus on brand development, in the immediate future, to focus on services with the motto "reasonable price, best service" to create the foundation for long-term development strategy Solution for distribution channels: Two current distribution channels of Logitech Vietnam include the wholesale and retail channel for corporate customers, agents and direct sales channels to consumers According to statistics from 2017 - 2019, the agency customer segment and the company account for 85% and direct retail customers account for 30% of Logitech Vietnam's revenue Therefore, in the period up to 2020, Logitech Vietnam needs to focus on the dealer sales channel to maintain the current development, but 74 at the same time must build a foundation for direct retail to create a foothold probably in the long term To focus on direct retail channel to consumers, Logitech Vietnam needs to develop more chain of sale systems in shopping malls and supermarkets in big cities, and at the same time it is necessary to improve and promote more sales and after-sales services in order to meet the increasing demands of customers through the policy of "moderate price, best service" Thereby, Logitech Vietnam will strengthen existing customers as well as attract new customers from competitors For dealer customers, Logitech Vietnam needs to maintain and develop current dealers in major cities in the country with the main policy of "best price, fastest delivery" In addition, Logitech Vietnam also needs to expand its online sales Currently, Logitech Vietnam has an online sales channel, but the number of sales is not as expected, mainly customers access product information, price, and purchase is still directly through sales executives or stores However, selling online will be a popular sales channel in the future as the society develops, people's income improves, and the time of customers is limited, the choice of buying method through the network is very efficient and convenient because it takes less travel time for customers Solution for distribution channels: Promotion: Currently, because Logitech Vietnam focuses on dealer customer segment with competitive price policy, Logitech Vietnam does not pay attention to promotions Therefore, in order to increase the attractiveness when buying products to customers, Logitech Vietnam should invest in researching, launching attractive promotions and must be ahead of competitors to maintain and strengthen customers, attract existing and new customers Logitech Vietnam needs to launch promotions with the surprise element with a short promotion period, and should also have a long-term advertising strategy to recall the image of Logitech Vietnam in the perception of customers Customer care: Currently, the customer care of Logitech Vietnam is done directly through the sales staff and relatively good technology However, in the coming time, with increasingly high and diversified customer demand, public 75 officials and employees need to invest in equipment, skills and skills to properly handle any requirement of customer Logitech Vietnam departments and divisions need to establish stores of customer information Based on customer data, a special program will be set up for each specific group of customers to meet their maximum needs Brand: Logitech Vietnam needs to pay attention to developing its brand, and then have the right policies The main purpose of branding is to increase awareness among consumers about the Logitech brand, so branding issues need to be closely and harmoniously combined to build the brand Logitech becomes a trusted brand when customers have demand for high-tech goods in the future 3.3.4 Solutions for product differentiation Logitech Vietnam needs to focus on two main issues: - Increase investment in research and development through upgrading facilities and people - Due to the characteristics of Logitech Vietnam as a commercial office, distributing products with high specifications and technology, the research and development department needs to invest in research and development of strategic product and technology orientation for Logitech Vietnam In the immediate future, it is necessary to focus on researching the applicability and distribution of new technology products of the company in the shortest time, in order to make a difference for Logitech Vietnam This is a decisive factor for successful implementation of the product differentiation strategy 3.4 Some recommendations for distribution channel strategy development 3.4.1 Some recommendations to Logitech Vietnam In order for the business strategies of Logitech Vietnam to be implemented effectively and successfully in practice, the author proposes some recommendations for the implementation as follows: Firstly, building appropriate policy system and support plan Based on the current situation with specific annual targets for implementation, it is necessary to have appropriate policies and plans to support the implementation Specifically, Logitech Vietnam needs to develop and complete policies mainly 76 according to the aforementioned solutions on investment, prices and products, human resources, financial management, marketing, action plan and implementation organization Second, develop and complete action plans, budget and budget allocations and implementation procedures From the annual and strategic goals, to the existing policy systems, continue to institutionalize into specific action programs by implementation process procedures and action plans The action plan should include, at a minimum, the key elements: target audience, duration, content of work, facilitator, supervisor, reporter, and required budget resources Third, allocating human resources, finance, facilities, etc From concrete action plans to implement policies to the implementation of the annual and strategic goals, it is necessary to allocate resources in terms of personnel, finance, facilities, and time planning for implementation organization This is the budget plan for implementing the annual business plan as well as implementing the strategy of Logitech Vietnam Fourth, the organization is committed to and implementing the strategy In order to successfully implement your strategy, it is an important task to communicate your strategy to all Logitech Vietnam staff Thereby, they envision the goals, vision and mission and realize the core values of the business These contents make employees feel reassured and determined to implement their own plans and contribute to completing the strategic goal plan In that content, the communication of commitment to strategic implementation between employees and leaders is very important, it is a commitment between the parties to jointly implement and strive to achieve strategic goals as targeted Fifth, controlling, evaluating and adjusting strategy in the implementation process In the process of implementing a business strategy, supervision and inspection is a necessity and must be done There are many different types of tests, depending on the purpose Logitech Vietnam should organize the following inspection system: 77 - Check irregularly and periodically for activities of departments, then make reports to submit to the Director; - Internal communication channels include: financial reports, quarterly preliminary reports, year-end summary reports, etc In addition, Logitech Vietnam may also organize to collect external information such as customer feedback (comment book), information about competitors From information sources Information gathered by leaders of Logitech Vietnam has analyzed and evaluated the strategy implementation progress, the situation of the environment to review and adjust the strategy Every year, Logitech Vietnam adjusts its strategic targets and implementation with annual plans; perform product price adjustments; research to improve financial management mechanism, etc In the process of implementing the strategy, Logitech Vietnam must always pay attention to the inspection, supervision, collect the necessary information and make reasonable, prompt and timely adjustment 3.4.2 Recommendations to the Government - Develop a legal system, maintain and develop the 2005 enterprise law, investment law, commercial law and other laws to help the company's investment and business develop smoothly and strongly - The State should have policies to stabilize the economy, to help recover the current crisis - Providing timely and accurate market information both at home and abroad, information on economic policies or forecasts of market demand will help companies to make appropriate development policies 78 CONCLUSION The thesis "Distribution channel evelopment of Logitech Vietnam" focuses on analyzing external factors such as economic factors, population, income, sociopolitics, etc re-evaluate all factors within the enterprise, thus drawing out the opportunities and challenges of Logitech Vietnam compared to competitors The purpose of this strategy is to strengthen and develop the company's distribution channel to meet the shopping needs of customers in the most proactive manner, to make the most of the company's strengths and enhance its competitive position in Vietnam market The distribution channel development strategy is a functional strategy that supports the company's development strategy This strategy is a guiding tool to help the company have an overview of the distribution channel in Vietnam in general and the distribution system of competitors in particular, from which to see the way to the set goal However, in order to achieve this, Logitech Vietnam needs to specify its strategy with short and mid-term plans with serious performance 79 REFERENCES Vietnamese: Prof Dr Nguyen Bach Khoa, Dr Cao Tuan Khanh (2011), Trade Marketing Textbook, Statistics Publishing House, Hanoi Nguyen Huu Lam, Dinh Thai Hoang, Pham Xuan Lan, Strategic Management for Development of Competitive Position, Education Publishing House, HCMC Nguyen Thi Lien Diep, Pham Van Nam, Business Strategy and Policy, Statistical Publishing House, HCMC Hoang Thi Nhan (2011) "Business development of mobile telecommunications services at Electricity Information and Telecommunication Company - EVN Telecom" Nguyen Hong Hanh (2009) "Development of distribution channel for Nokia mobile phones of FPT Corporation - Nokia distribution center" Nguyen Thi Hoa (2011) "Development of distribution channels for electric cables in the Northern market of Van Xuan Electric Cable and Company Limited" Nguyen Thi Thuy (2007) “Completing the computer product distribution channel in Viet Hung Trading Co., Ltd Duong Ngoc Dung (2009), Competitive strategy according to Michael E Porter theory, HCMC General Publishing House Nguyen Khoa Khoi and Dong Thi Thanh Phuong (2007), Strategic management, Statistics Publishing House of HCM City 10 Tran Dang Khoa (2007), "Development of Vietnam's telecommunications industry to 2020", Doctoral thesis in economics, University of Economics, Ho Chi Minh City English: Fred R David (2006), "The concept of strategic management", Statistical Publishing House, HCMC Philip Kotler (2007), Basic Marketing, Labor - Social Publishing House, Hanoi Philip Kotler (2011), Marketing Management, Labor - Social Publishing House, Hanoi 80 Michael E Porter (1996), “What is Strategy”, Havard Business Review, NovDec, 1996 Thompson & Strickland (2003), Strategic Management Concepts & Cases, Mc Graw Hill New York, USA Aaker, D.A (2007), Implementing Business Strategy, Young Publishing House Smith, G.D., Arnold, D.R., Bizzell, B.R (2003), Business strategy and strategy, Translated by Bui Van Dong, Statistics Publishing House Harvard Business School Press (2007), Effective business strategy, First News and HCMC General Publishing House David, F.R (2015), Strategic management: arguments and situations, HCMC Economic Publishing House 81 APPENDIX Appendix – Intensive interview questionnaires for the Board of Management and specialists of Logitech Vietnam SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness ………… 0O0………… INTENSIVE INTERVIEW QUESTIONNAIRES Interviewer: Cao Thanh Thuy Interviewee: Logitech Vietnam Full name: Position: I would like to sincerely thank you for taking the time to interview today In order to create conditions for me to have the most authentic bases to conduct research on the topic "Distribution channel strategy development of Logitech Vietnam", please let me know some of the following information: What are the target customers and areas that Logitech Vietnam is aiming for? Answer: Target customers are supermarkets, shops, wholesale companies, retail computers and accessories The market area that the company is targeting is nationwide What are your general distribution development goals in the future? Answer: The general goal of developing a distribution channel is to bring the company's products to consumers faster, distribute more products of the company What types of distribution channels has your company currently been using? Answer: Currently, our company is using direct distribution channel, wholesale channel and retail channel What are the criteria for selecting your company's distribution intermediaries? Answer: These intermediaries are capable of distributing good products What is your channel membership incentive? Answer: The Company offers promotional discount strategies for channel members, with customers who buy a lot of products, the company has a certain discount, with customers who have attached to the company there is also a higher discount for new customers What is the maximum number of products ordered by a customer at a time? How is the delivery time? Answer: The maximum order that companies and shops place for Logitech components products is 500 products; the time that the company responds to such orders is days In your opinion, what are the advantages of competitors compared to the company in the field of computer component products business? Answer: The main competitors of the company include Razer, Asus, MSI, BenQ, Kingston, etc are evaluated as: Strong brand, experienced ahead, large product consumption Some competitors in this list have a better level of consultancy and warranty than Logitech Vietnam Appendix 2: Customer information survey CUSTOMER INFORMATION SURVEY Question 1: Could you please tell us that your company (stores) buying Logitech Vietnam's computer accessories is due to: □ Product quality □ Service attitude □ Convenient location □ Cheap price Question 2: How does the current product portfolio meet your product needs? □ Very good □ Good □ Normal □ Not good Question 3: How many computer accessories of Logitech Vietnam you buy each time? (product/times) □ 500 Question 4: How often you buy products in Logitech Vietnam? □ Once a week □ Once two weeks □ Once a month □ Once over a month Question 5: Please indicate the average period of your receipt after Logitech Vietnam's order? □ Right after the order □ - days after the order □ - days after the order □ >5 days after the order Question 6: Please give your assessment on delivery time of Logitech Vietnam □ Very quickly □ Quick □ Normally □ Slowly Question 7: What is your assessment on sales promotion activities (discount, promotion activities) of Logitech Vietnam? □ Very good □ Good □ Normal □ Not good Question 8: What is your assessment on the current distribution channel of Logitech Vietnam? □ Very good □ Good □ Normal □ Not good Appendix 3: Interview results for the Board of Management and staff Interviewed unit: Logitech Vietnam Interviewees: Nguyen Van Cuong Director Nguyen Minh Phuong Head of Sales and Marketing Department Nguyen Van Duy Head of Project Department Nguyen Ngoc Lan Head of Finance and Management Department Questions: What are your targeted customers and markets? Most of the answers indicate that the target customers the company is targeting are organizational customers: shops, wholesale and retail companies of computer accessories The area that the company is aiming at is developing distribution channels nationwide What is your general objective of distribution channel development next time? - Most of the answers to the general goals of distribution development that the company is aiming for in the near future are: - Development of increasingly widespread distribution channels, better meet the needs of customers, first to develop distribution channels nationwide - Providing better quality of customer service, considering the customer as the focus of the company's business strategies - Improve the quality of salespeople and market development staff - Promote market research activities to work better in order to propose solutions for developing distribution channels - Enhance the image of the company in the market - Achieve high and stable growth What are your current types of distribution channels? How are your organizational activities? Currently the company is using direct distribution and retail channels With direct channels, the company retails consumer computer accessories With the retail channel, the company sells its products to computer retail stores, shops, supermarkets and so on Although the company operates on such two channels, Logitech Vietnam focuses on providing grade your product through retail The revenue that businesses receive from this channel is up to 80% while the revenue received from direct channels is 20% Retail channel is more appreciated by customers because customers can easily access and choose computer accessories and service quality is also better than direct channels The company's organization of distribution channel has not covered the whole country; currently the company focuses on exploiting customers mainly in two central cities including Hanoi, Ho Chi Minh City and other In neighboring provinces, the development of distribution channels needs to be further improved What are your selection standards on distribution intermediateries? What are conditions and responsibilities of distribution intermediateries? Most of the respondents said that it is their responsibility to channel members that they must be experienced in the business of computer products and accessories, have direct salespeople who are capable pay and obey the rules of the company Conditions of responsibility of intermediaries for distribution: The Company sets a specific price bracket, channel members must comply with the discount and sale of products, the discount rate must not exceed 5% of the price bracket Conditions of sale: Intermediaries must ensure the technical and material facilities consistent with the products that the company provides, fully equipped with product information for the sales staff Territorial powers: the company has clearly defined the rights and responsibilities of intermediaries in its market area, intermediaries are only exploited in their own market but not in the market of other intermediaries, ensuring their rights and avoiding conflicts that affect the overall efficiency of the channel What is your promotion form of channel members? Currently, the company has two types of incentives for channel members: discount and support policy Discount policy is 15-20% when buying products with an amount of 50 or more products, discount for customers to pay early With the policy of supporting the company to support transportation costs for channel members, providing documents for sales How many products per order customers take?How is your delivery time to meet their demands? The maximum order that companies and shops place for computer accessories includes 500 products, the delivery time to meet such orders is within days In your opinion, what are advantages of competitors in this industry? Main competitors of Logitech Vietnam include Razer, MSI, BenQ, Kingston, Asus, etc Some of them are evaluated to have strong brands, more experienced, big product consumption, consultancy and warranty level higher than Logitech Vietnam ... viewpoints of distribution channel development of Logitech Vietnam 69 3.2.1 Prospective forecast of distribution channel development .69 3.2.2 Strategic viewpoints of distribution channel development. .. theoretical basis of distribution and development of distribution channels of companies Analysis of study results on the status of distribution channel development of Logitech Vietnam Proposing... Roles and functions of distribution channels 26 1.2.3 Analysis of distribution system in Vietnam 28 CHAPTER 2: DISTRIBUTION CHANNEL STRATEGY DEVELOPMENT OF LOGITECH VIET NAM 36