Market orientastion literature posits that there exist positive relationship between MO and
organization’s performance. Research in market orientation has overlooked the importance of
market orientation’s impact on various aspects of marketing strategy especially on distribution
channel strategy. Using capability frame work the paper conceptualizes the relationship between
various constructs of MO with channel strategy. The article discusses relevant literature and
develops propositions in this regard. The paper proposes that channel structure and intensity
decisions are directly related to organizations information generation and dissemination
capabilities while level of overall MO determines the intentions to control the channel power.