Managing Channel Partner Conflict: The Case of Z-Tel Mobile, India

Abstract

A channel partner is a third party involved in sales and services. They act as a front end for the organization and play a vital role in promoting the business. If a channel partner acts against the business, what options are left with the company? The case narrates such a scenario of conflict between a leading mobile telephony business player and its channel partner in Andhra Pradesh Telecom Circle, India. The channel partner created chaos by intimidating the sales team and approached the distributor association to address the conflict. The association initiated a boycott of business related to the company in that region. It became imperative for the COO of that organization to resolve the issue without compromising its image and business interests. The case involves stakeholders such as channel partners, distributors, a trade body and the sales employees of the organization. The resolution of the issue is embedded in the theoretical aspects of negotiation and social exchange theory.