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There has been a multiplication of retail formats over recent years,as moderninternational and local operators such as 7-11 or Makro expand their operations.With their more efficient management practices,they have caused a decline in the importance of the traditional wholesaler channel and the revolution of marketing channel. This paper will focus on the channel development strategy of distribution organizations which operate in the eastern area of taiwan. The results show that the channel member and company factor influence the manufacturer selecting his marketing members in the eastern area of taiwan.The results also show that the population and infrastructure and competition conditions influence the development of logistic mechanism in the eastern area of taiwan. The business characteristics and the ability and strategic goal of the retails influence his logistic activities and channel policy.The channel members of the market in the eastern area of taiwan also have different effects on the different channel activities of retails.
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