Question

Discuss the following statement: One of the first things companies discover about international channel of distribution patterns is that in most countries it is nearly impossible to gain adequate market coverage through a simple channel of distribution plan.

Answer 1

World is become a village and companies are rapidly entering from one country to another and adapting different channel of distribution. There are the varieties of channel of distribution and companies are adapting according to their nature of business and practices. A single channel of distribution is often unavailable in foreign countries because of the nature of business and customers attitudes. One reason is that the channels used may be very unfamiliar to the producer and only seem to be complicated. More realistic reasons may be true in financial arrangements or the unavailability of middlemen. In many countries, middlemen may be specialists in either product or market area or both. If this is the case, several different middlemen are needed to distribute a single product in a country or to distribute several products within a single contiguous area.