Sources of conflict and conflict resolution strategies between distributors and retailers (case of dry cell industry in Nairobi)

Abstract

This report presents the findings of sources of conflict between the distributors and the retailers in the dry cell industry in Nairobi. It's set to achieve three objectives; firstly it is supposed to identify the sources of conflict and their extent and thirdly it is supposed to suggest ways of resolving these conflicts. EBKL represented the dry cell industry because it's the only dry cell Company with any distribution system. The research used a sample of 36 mini-supermarkets as the respondent out of a total of 192 mini-supermarkets in Nairobi. A response rate of 94% was achieved. Five sources of conflicts were identified and their extent identified. An average of 37% of the respondents felt that lack of volume discount was the greatest cause of conflict. This is the conflict that was voted by the highest number of respondents. Generally the retailers are somewhat satisfied with the services of EBKL distributors. In fact most of them prefers collaboration strategy to any other in settling their complaints with the distributors. It was also established that meeting with the distributors helped to find a middle ground where each of the members benefited. Finally the researcher identified areas of further research such as doing a study where the sample size is drawn form all over Kenya. This research could also be done in other industries because each of them has unique problems.