Abstract
M.Comm.
The goal of this study is to investigate the causes for conflict within the distribution channel currently used by a major manufacturer and exporter of steel products. This manufacturer is currently using six South African based agents. These agents are responsible for the marketing of the manufacturer's products in foreign markets. This channel of indirect exports was chosen due to the lack of a proper infra-structure within the
export division of the manufacturer. Conflict between manufacturer and agents can cause foreign end-users to get a distorted image of the manufacturer and its products. Therefore it is necessary to investigate the causes for conflict. Plans can then be made to identify what can be done to switch a conflict situation to a situation of co-operation within the distribution channel. The first part of this study provides a theoretical
framework, based on literature from many sources, on the different international distribution channels that are available. Special attention is given to indirect exports and the different forms that are available. Thereafter the causes of conflict and co-operation in the channel are discussed, as well as the different types of conflict and how to manage conflict. The second part of the study is practical, with interviews being held with the six agents to get their view on what causes conflict between them and the manufacturer. Thereafter the personnel of the manufacturer is interviewed to get their perception of the cause of conflict. The two different views are combined in order to make recommendations and conclusions regarding the causes of conflict within the distribution channel. The major cause of conflict in this channel is due to poor communication between the manufacturer and agents. This, problem can only be resolved if most of the information flow is computerised. This will ensure that 'information is reliable and on time. If this can be achieved, conflict situations can be switched to a situation of co-operation.