Strategically employing natural channels in an emerging market

Abstract

In an era in which the cost efficiencies associated with standardization tend to be the dynamic force that drives international strategy, the growing movement toward understanding and adapting to natural channels of distribution appears to be an anomaly. The authors explore the natural channel phenomena—i.e., the local or national channel that has evolved within a market—within the context of U.S. multinational operations in the emerging market of India. Twenty-two in-depth interviews conducted with U.S. multinational international marketing managers engaged in distribution operations in India guide the exploration of the internal and external factors influencing channel strategy. The interviews provide validity for the natural channel model put forth by Griffith and Ryans (1995) while substantially advancing theoretical and managerial insights into the importance of factors influencing distribution. Finally, strategic distribution approaches employed by U.S. multinationals to effectively operate in India are presented. Insights for academics and practitioners are addressed. © 2005 Wiley Periodicals, Inc.