channel conflict

Popular Terms
Situation when a producer or supplier bypasses the normal channel of distribution and sells directly to the end user. Selling over the internet while maintaining a physical distribution network is an example of channel conflict. See also disintermediation.

Use 'channel conflict' in a Sentence

Many suppliers to the Walmart chain have specific contracts with the company to maintain a normal distribution organization in order to avoid a channel conflict which could alter Walmart's profits.
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Barnes & Nobles launch of their website caused no end of hair pulling over the channel conflict it inadvertently had created.
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The manufacturer decided that a channel conflict would allow them to maximize sales by allow consumers to purchase items directly from the factory.
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