The process of creating future competitive advantage through sales and distribution
channels begins with an understanding of how the current situation has evolved. The
preferred sales and distribution channels within an industry have often been clear because
certain channel types have met the basic needs of an industry better than others did. In
industries where the optimal channel approach is already controlled by an entrenched
competitor, other suppliers typically focus their efforts on duplicating the skills and
capabilities of the leader’s channel. This competitive dynamic tends to result in stable
positions. Unless a leader makes a serious mistake, it can remain in a strong competitive
position indefinitely while the other firms continue to struggle.