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Based on the given case suggest the conflict resolution strategy by applying the given framework??

Note - (please Answer in Sales and distribution term)

Case of Manufacturer Having Its Own On-line Presence: Dual Distribution with On-line Selling and the Causes of Channel Conflict Manufacturer (Tupperware) Standard Channel (independent direct salespeople) Owned Internet Sales Channel (Tupperware.com) Consumers Figure 1: Manufacturer Having Its Own On-line Presence The channel design of the manufacturer, which is Tupperware, is given in Figure 1. In this case the manufacturer itself creates a company-owned online presence, in direct competition to its traditional reseller channel. Tupperware sells its plastic containers in this way, i.e. both through independent direct sales people, and also on the Internet. In this case, disintermediation is said to occur, i.e. the intermediary is being bypassed by the manufacturer. When adding the Internet channel, conflict can occur if the manufacturer wants to maximize its profits over its totality of marketing channels, one of which is the online channel, since the Internet channel may offer the manufacturer a higher margin on sales than the traditional bricks-and-mortar channel. In addition, in order to cover the costs of establishing and operating the new channel, customers may have to be pushed to buy directly from the online channel, rather than through the resellers. As the Internet allows businesses to establish a direct channel to customers, the emergence of e-commerce has made domain conflicts an even more burning issue. That is, a manufacturer selling online may directly cannibalize the customers of the bricks-and-mortar channel, thereby causing conflict over the population to be served. The bricks-and-mortar channel, of course, is convinced that the customers who chose to shop online at the manufacturer's site would have shopped in the physical store if the web site did not exist. Furthermore, the Internet pushes old territorial borders aside, since it can take away business from anywhere in the market area served by the bricks-and-mortar channel, thereby causing domain conflict over territorial rights. Domain conflicts over the functions and duties to be performed by channel members also can arise when the company sells through a company-owned Internet channel. A customer can visit a bricks- and-mortar store, inspect the product, ask the personnel some questions about the product, check the price, and then buy the product online. This is a classic example of freeriding, since the bricks- Domain conflicts over the functions and duties to be performed by channel members also can arise when the company sells through a company-owned Internet channel. A customer can visit a bricks- and-mortar store, inspect the product, ask the personnel some questions about the product, check the price, and then buy the product online. This is a classic example of freeriding, since the bricks- and-mortar retailer bears the cost of serving the customer, but receives no compensation for it, because it does not get the sale on the product. A further domain conflict is possible if a customer who has bought from the manufacturer's Internet channel decides to return the product, and tries to do so at a bricks-and-mortar retailer. Generally, the retailer will not agree to repurchase the item, since otherwise it will bear a cost without compensation. Differing perceptions of reality also frequently occur between manufacturers and resellers in this case. Manufacturers often believe that they are just expanding the market reach, generating sales from consumers who cannot or will not purchase the company's products in any other way. Actually, as many as 38 percent of the survey respondents who spent more on holiday gifts online in holiday 1999 versus holiday 1998 gave as their reason that they were able to purchase products online that were not accessible to them near where they lived or worked. Even so, bricks-and-mortar resellers probably will perceive that sales made on the manufacturer's web site have been stolen from them. Based on the case details suggest the conflict resolution strategy by applying the given framework. Assignment on Channel Conflict Framework Application Channel Conflict Framework: The channel conflict framework applies 2 parameters which are (i) the importance of threatened channel is high or low (ii) prospect of channel conflict leading to value destruction is high or low. Depending on these two parameters, 4 different action points are possible. These are acting immediately to address conflict, allowing the threatened channel to decline, looking for opportunities to reassure and leverage power in threatened channel, or do nothing Importance of Threatened Channel High Low Act immediately to Avert or Address Conflict High Prospect of Destructive Conflict Allow threatened channel to decline Low Look for opportunities to reassure threatened Do nothing channel and leverage your power Now apply this framework in the short case given below and suggest the actions to be taken for resolving the channel conflict scenario