Assessing the Challenges of Indirect Sales Channel Management: The Case of Ethio telecom

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Addis Ababa University


The purpose of this study is to assess the challenges of indirect sales channel management in ethio telecom. Channel management is about selecting and motivating the intermediaries and to evaluate their achievements (Kotler & Armstrong, 1999; Jobber, 2001), further complements with the issues of training and managing conflicts between producer and intermediaries is important. Ethio telecom distribute it products through indirect channel, although the distribution channel plays an important role in the company the distribution channel management has challenges. Therefore, this study aims to reveal the core distribution management challenges in practicing distribution management elements: Selection process, motivation, training, evaluation and conflict management. The study utilizes both quantitative and qualitative research approaches and descriptive research design. For selecting sample simple random sampling technique is used, in that ethio distribution related staffs and distributors staffs are participated. The total sample size is 141. In terms of questionnaires administered, 141 respondents have received the questionnaire, and 123 (87%) have returned the filled out questionnaire. Data analysis is performed by using descriptive statistics. IBM SPSS statistical software version 20 is used. In addition, to fill the questionnaires gap, data was collected by conducting interview research. The result of the research identified that the distributor selection process lacks contract that convince partners, motivating partners with bonuses, rewards, support on trade fairs are shortage of the channel, there is improper handling on conflict management and the training investment has less attention, from identified challenges improper handling of conflict can damage the company since the collusion bring malfunction of both the principal and the partner. Hence as the distribution channel is significant contributors for the company revenue and sales it needs to work on identified gaps. The study finding can have implications for further research and policy.


A Thesis Submitted to Addis Ababa University College of Business and Economics, Graduate Studies in Partial Fulfillment of the Requirements for the Degree of Executive Master of Business Administration


Ethio telecom(ET), Indirect sales channel(IDC), Distributors channel selection, Distributors motivation