Distribution Design and Golobalization: Assignment: 8

DISTRIBUTION DESIGN AND GOLOBALIZATION
ASSIGNMENT: 8
ID FULL NAME
70074696 TOQEER NASIR
SUBMITTED TO:
SIR ARSLAN HAIDER
DATE OF SUBMISSION:
28-4-2020
SESSION OF SUBMISSION:
SPRING 2020
Ans. International distribution is the processes relationships and fulfilment that you set in place to get
your products into overseas markets. Not to be confused with international ecommerce. That's just
international shipping. International distribution is about wholesaling into new countries.
A multinational entering a new market in a developing country knows that on its own it cannot master
local business practices, meet regulatory requirements, hire and manage local personnel, and gain
access to potential customers. So, it partners with a local distributor. At first, sales take off revenues
grow, and the entry seems like a smart move. But when sales plateau, the corporation begins blaming
the distributor for not investing sufficiently in business growth or expanding markets, and the distributor
claims that it hasn't received enough support and that the corporation's expectations are too high. The
key to solving such problems lies in recognizing that the phases are predictable and can be planned for.
As a new business grows in an emerging market, its marketing strategy needs to evolve, and each
sequential phase requires different skills, financial investments, and management resources. The author
offers seven strategies to manage the multinational-distributor partnership. He discusses what to
consider when choosing a distributor, how to structure the relationship between the two partners, what
resources the multinational should commit, and what can be expected in return.
He states that a successful distributor must risk investing in training, information services, and
advertising and promotion in order to implement the company's marketing strategy and grow the
business. Paying attention at the start of a partnership can result in a better working relationship
between a multinational and a distributor, along with more consistent sales and growth for the
corporation. Both country and distributor selection should be strategic decisions that are done after
objective assessments and through both proactive and systematic approach.
The selection of all countries and distributors should be pragmatic decisions taken after accurate
evaluations and with both a constructive and comprehensive approach. As the company strategy phase is
beyond the reach of this report, it is presumed that the supplier has already made two strategic decisions
on prior to the internationalization process. By collaborating manufacturers can access the required
additional capabilities or resources and thereby minimize the impact of these three commitments.
Local partners are best positioned to handle local business activities, meet local regulatory standards,
obtain introductions to local customers and recruit and handle local workers. reated resellers also have
existing supply chains and customer relationships which decrease the need for new operations to be
created.Creating a Market Entry Process for Small High Technology Companies.A Case Study from the
Medical Devices Industry.
Developing a Market Entry Process for Small High Technology Companies. As global competition
intensifies, the position of international distribution for exporters of all products including building
products exported to Japan is becoming increasingly important A Recent article in the Harvard Business
Review addresses the importance of handling distribution strategically in developing countries. Although
Japan is a developed nation, due to certain peculiar characteristics of the Japanese economy, many of
these rules apply still.
These include a homogeneous but distinctive community experiencing a degree of westernization, the
historical reliance on long-term relationships, the intensity h of cross-owned business families called
keiretsu, and changing political and power structures. A few of the important criteria for the effective
international delivery of goods and services are worth noting.
END

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DISTRIBUTION DESIGN AND GOLOBALIZATION

SIR ARSLAN HAIDER

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