Page 232 - GLOBAL STRATEGIC MARKETING

End of Unit Summary

This unit discussed why 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. It was determined that 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. Different types of retailing structures needs to be

assessed and infrastructure of the intended country needs to be
understood. The example given of global retailers highlighted the fact that

global competition is emerging from developing countries such as Asia
and Latin America. As such, Western retailers need to be aware of this
threat in order for them to compete on a global scale.