Question

Illustrating the reasons why the firm might want to sell the information goods to group rather than directly to end users

Answer 1

• Although a multinational’s primary focus after entering a new country is establishing a customer base there, the company should create links among its national distributors as soon as possible. The links may take the form of a regional corporate office or an independent network such as a distributor council. The transfer of ideas within local markets can improve performance and result in greater consistency in the execution of international strategies.
• Multinationals need to do a better job of selecting and working with local distributors. In particular, they must understand that distributors are implementers of marketing strategy, rather than marketing departments in the country-market.
• better working relationships, fewer plateaus and crises, and more consistent growth in market share and sales revenues.
• Once corporations understand that they can control their international operations through better relationship structures rather than simply through ownership, they might also find longer-term roles for local distributors within a regionalized approach to global strategy.