Design Organisation


Operating models
Channel-based

 

First tier of separation is by channel e.g. online; stores; distributors. P&L is measured by channel.


Channel Based


Advantages

Provides focus on:
  • Growing revenue specific to the channel
  • Developing channel specific capabilities
  • Understanding customer behaviours specific to the channel
  • Able to respond quickly to channel trends
 

Disadvantages

  • Higher operating costs due to duplication of capabilities
  • Can result in a different experience for the customer by channel
 


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