1. The value delivery system
Choose
the
Value
Provide
Communicate
Capture
Customer insight
Capability assessment
Co-create solutions to buying problems
Use value-adding partners
Proclaim the value proposition
Develop a shared vision
Understand the cost-to-serve
What is the channel margin and who receives it?
Source: Lanning, M.J. and Michaels, E. G., ‘A business is a value delivery system’, McKinsey & Co., Inc., June 1998

2. Key issues for channel strategy
Effectiveness
How well do our channels cover the market?
How well do our channels meet out customers’ needs?
Are our channels building a competitive advantage for us?
Efficiency
Do we understand the true cost-to-serve of our different channels?
Are we surrendering too much channel margin?
Have we explored all the opportunities for cross-channel synergies?
CHANNEL STRATEGY
Environment
How are customers’ expectations changing?
What new opportunities for value creation are emerging?
Where might we be vulnerable to future channel disruptions?

3. From single channel to omni-channel
D.C.
STORE
Multi channel
D.C.
HOME
D.C.
STORE
Omni Channel
HOME
D.C.
STORE
D.C. = Distribution Centre
CLICK & COLLECT