Redesigning the role of cell phone dealers

Abstract

Introduction. Initially, operators and smartphone manufacturers made their products available to users through middlemen. Currently, companies sell directly to customers to cut down intermediation costs and boost competitiveness. As a result, many distributors vanished or merged. This study aimed to identify customer needs and market changes to restructure distributor roles and retain their profitability. Methods. Interviews were carried out with 30 key people in the telecommunications industry such as Chief Executive Officers (CEO), Chief Financial Officers (CFO), directors and managers of operators, manufacturers, and retail channels in the Central American market (Honduras, El Salvador, Panama, Nicaragua, and Costa Rica). Interviews also included global distributors. Results. Most of the interviewees of the Central American telecommunication industry indicated that they would continue business with distributors. However, it was reported that it is important distributors diversify its service portfolios. Likewise, the interviewees indicated that there will be an important evolution in the supply chains in Central America in the next 5 to 10 years. Conclusion. Pure distribution seems to have disappeared from the needs of customers. Customers, today, view outsourcing services as essential for increasing efficiency and improving their financial metrics. Thus, Honduran distributors portfolios should evolve towards services.