ABSTRACT

Designing and managing efficient international distribution networks should concentrate on giving the final customers product information and accessibility, maintaining profitable distribution, partner relationships, and strengthening the company’s global marketing strategy. This chapter discusses the kind of influencing factors, such as differences in the macro environment, the competitive structure, or the distribution system, that has to be taken into consideration when designing a distribution network. It reviews the managerial factors, which are relevant in channel and logistics decisions. The chapter describes the involvement level of retailers in the internationalization process. It emphasizes the importance of distribution decisions in the company’s international marketing strategy. Local regulations are one of the most frequent reasons for differences in the distribution system. Channel organization is another important issue that considers using conventional distribution channels versus vertical marketing systems. Many companies operating in global niches know that there can be small and specialized wholesalers with the exclusive right to import a product in their own country.