Marketing Management, 16th Edition

Global Distribution Strategies

When multinationals first enter a country, they prefer to work with local distributors who have good local knowledge, but friction often arises later.39 The multinational complains that the local distributor doesn’t invest in business growth, doesn’t follow company policy, and doesn’t share enough information. The local distributor complains of insufficient corporate support, impossible goals, and confusing policies. The multinational must choose the right distributors, invest in them, and set performance goals to which both parties can agree.

Distribution channels across countries vary considerably. To sell consumer products in Japan, companies must work through one of the most complicated distribution systems ...