Even when analyzing channels, distributors and retailers will naturally support higher margin products. You can’t sell Honda scooters through Harley dealerships—they won’t be incentivized to sell scooters because they won’t make as much money. Instead, you need new distribution channels where your products and margins will create action. Margin is like gravity—it pulls people towards it. People and companies are pulled to the margins. Because the margin profile is different for disruptive products and services, you can’t work through existing channels.
Disruptive products require disruptive channels.
