Article Overview: (30%) In this chapter, the authors focus on how technology companies manage the complexities of distribution channels and chains supply chain to successfully supply products in the high-tech market. The authors argue that effective distribution management helps companies reduce redundancies and inefficiencies in their production system. As a result, companies can improve relationships of their alliances (i.e. customers, suppliers, manufacturers and distributors) which increase customer satisfaction and cost advantage. However, if companies have ineffective channel strategies, conflicts can occur between companies and their alliances. Because they usually have different goals, they think they cannot resolve conflicts with common solutions. This situation will influence companies to fail in product delivery. In distribution channels, the authors introduce distribution channel strategy which consists of channel structure, management and performance. Channel structure describes how companies can convey products to end users. There are two types: direct and indirect channels. Direct channel means that manufacturing companies sell their products directly to customers (for example, selling in their own company stores or company websites) without intermediaries. However, the indirect channel is how companies sell through intermediaries to deliver products to markets. Furthermore, the authors suggest that companies can apply both direct and indirect channels called “hybrid or multi-channel” (e.g., franchising, cooperatives) in order to increase the success of distributing products to markets. In channel management, the authors explain how companies manage hybrid channels to reduce conflict and encourage… product development, companies must not only analyze customer demands to develop new products, but also research the customer behaviors in each market to identify segmentations. If companies do not have good distribution plans, they will fail to provide new products, even if these products can meet customers' needs. Furthermore, companies can create channel combinations (i.e. hybrid channels) to optimize delivery costs and satisfy customer demands in various segmentations. However, companies should be aware of gray markets that can create pricing differentiation challenges. For example, most customers will purchase products from unauthorized resellers rather than through authorized resellers due to cheaper prices. This situation will damage the relationship between manufacturers and authorized resellers. As a result, companies cannot successfully deliver new products to markets.