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a b s t r a c t Channel coordination plays a strategically important role in a multichannel context. In this study, we focus on the strategic roles played by product distribution and coordinative structure with profit sharing in the multichannel context. We use an analytic model to show that the brand differentiation is not a dominant distribution strategy to coordinate the channel conflict and improve channel performance; the manufacturer can sell identical brands through its online and traditional channels and actively employ a cooperative structure with profit coordination to maximize the