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Chapter 10: The management of
international distribution
Case study: Drambuie
It is important for organisations to consider what
distribution strategies it needs to adopt for each
of its international markets. Obviously, these
decisions are very much linked to whether or not a company chooses indirect
exporting, direct exporting, co-operation strategies or foreign direct investment. If the
organisation chooses a strategy of indirect exporting then it does not have any
responsibility for the distribution of the goods in foreign countries; it is usually the
export management, trading company or piggybacking company that deals with this
from the home country. The more involvement that the organisation has, such as
indirect exporting, co-operation strategies and foreign direct investment, the more it
needs to take control of its distribution. So, intermediaries need to be determined,
retailing structures need to be assessed and infrastructure of the intended country
needs to be understood.
Chapter 11: International niche strategies for
SME’s
Case study: Drambuie, Tyrrells Crisps
Small to medium sized enterprises (SME’S) are
a significant part of domestic and international
economies but are less powerful outside of their
home country because of limited resources and experience of foreign markets.
However, SME’s do have growth potential and there are a variety of different
strategies that can be adopted such as supplier strategies, niche markets and ‘born
global’ companies that use technology to become global players.