International Distribution, Importers, ExportersGlobal Distribution. Export Channels. Sales subsidiary. FranchisesEffective international distribution and entry strategies are crucial for companies aiming to succeed in global markets. They determine the mechanisms through which products or services reach international consumers and shape the firm's ability to establish and maintain a competitive presence abroad. International distribution strategies encompass the methods by which companies ensure the delivery of their products or services to consumers in global markets. Choosing an appropriate strategy is vital for achieving market entry success, optimizing profitability, and meeting customer expectations. The Subject “International Distribution” consists of three parts: 1- International Distribution.
2- Direct exports.
3- International Sales Network Management.
Sample - International Distribution: The educational aims of the Subject “International Distribution” are the following:
This will be achieved by:
In finishing this subject, student will know different possibilities that a company has for creating a network of international representatives and negotiation factors with possible agents at the time of signing a contract.
The Subject “International Distribution” is included within the curriculum of the following academic programs at EENI Global Business School: Postgraduate Certificate in Global Marketing.
Masters: Foreign Trade, International Business.
Languages:
In general; it would be ideal for an exporter to be able to sell directly to his customer with no need for intermediaries. In this way the exporter:
However, the truth is that this is not always possible (due to costs involved parties or market idiosyncrasies) and in these cases, the company should seek an intermediary. Direct distribution refers to the delivery of goods or services from the producer directly to the final consumer, bypassing all intermediaries such as agents, wholesalers, or retailers Market entry strategies define how a company establishes operations or presence in a foreign market. The choice depends on risk tolerance, investment capacity, and market potential.
Hybrid distribution—also known as dual or multi-channel distribution—is a strategy in which a company utilizes both direct and indirect channels to deliver its products or services. Rather than depending exclusively on its own sales force or solely on intermediaries such as wholesalers, retailers, or agents, the company combines multiple distribution channels to enhance market reach, maintain greater control, and improve operational efficiency. As a global leader in affordable flat-pack furniture and experiential retailing, IKEA exemplifies successful international distribution and market entry strategies. By 2025, the Swedish retailer has established a presence in over 60 countries, with more than 500 stores worldwide—offering a valuable case study in global expansion UNIQLO adopts a hybrid internationalization approach, integrating direct export of its Japanese-designed products with the establishment of company-owned retail outlets, instead of partnering with third-party franchises or local retailers Unlike traditional automakers, Tesla uses a direct-to-consumer (DTC) distribution model, bypassing franchised dealerships. Instead, the company manages the entire sales process through:
Traditionally, Nike relied heavily on retailers and distributors—such as Foot Locker and department stores—to sell its products. However, over the past decade, the company has made a significant strategic shift toward a direct-to-consumer (DTC) model, prioritizing its own retail stores, e-commerce platforms, and digital engagement channels. Successfully managing international sales networks requires a strategic blend of cultural adaptation, technological integration, and strong relationship-building. Companies can enhance performance by leveraging tools such as customer relationship management (CRM) systems and localization platforms, while also investing in hiring and training local talent and optimizing logistics operations. Regular analysis of network structures and evolving market dynamics is essential to ensure strategies remain agile, competitive, and aligned with long-term growth objectives. Effectively managing an international sales network in Africa requires a strategic combination of localization, digital adoption, and alignment with regional initiatives such as the African Continental Free Trade Area (AfCFTA). To unlock the potential of Africa’s $2.1 trillion consumer market, businesses must address persistent infrastructure challenges, capitalize on high-growth sectors, and build resilient, data-driven sales networks. Success in this dynamic environment hinges on adapting to local market conditions while leveraging continent-wide integration efforts for scale and sustainability.
We will analyze the most appropriate profile of a Foreign Trade representative or agent, how to find him or how to apply a control mechanisms. What we must keep in mind is that the representative or agent is only useful when he starts to sell. Finding the agent is not the end in itself, rather obtaining orders through him. We will learn about selling into hypermarkets and department stores. Student will:
To help overcome the difficulties encountered in international markets; it may often be in interests of small and medium size enterprises to resource a separate organization for promotion and/or sale of their products (services) abroad. It is quite common in Europe. It consists of uniting export departments of several enterprises to form one common one for use by all. The option “growing from zero” of the export department which can be seen as the most efficient, is the creation of shared structures between various enterprises; what we will call “export consortiums.” Trading enterprises are enterprises that sell domestically products produced abroad.
Sales Subsidiary. This formula enables having much stricter control of marketing policy. For the company, creation of a subsidiary means a long-term investment. Thus, the company should make a series of really in-depth research studies, to prevent any mistakes. Alternatively, the company could create a sales subsidiary but only when sales potential is high. Fully owned subsidiaries have been viewed as an international movement of capital. However, the capital transfers are accompanied by technological flow, managerial control, and access to input and output markets otherwise unattainable to receiving country. The various formulae analyzed so far, correspond to what we could describe as a traditional distribution chain: from manufacturer to the importer, from the importer to the wholesaler, from the wholesaler to the representative, from the representative to the sales point and from the selling point to the end user. Once necessary experience has been obtained; it cedes the opportunity to sell its products to those people or enterprises that wish to invest, creating a direct sales point similar to one already set up. Finally, we will analyze how the e-business can influence international distribution. We believe that enterprises, nowadays, should look at digital distribution strategies. We see a business environment changing, from consolidated multinational enterprises with established distribution channels selling “atoms” to pure Internet start-ups that only sell “bits.” When we think about “bits” products we automatically think about digital distribution over the net, a global, flexible, instantaneous distribution that in many cases, will not be controlled by national customs controls. What's more, implementing a digital distribution strategies can create tensions in our traditional distribution network if we cannot create synergies. (c) EENI Global Business School (1995-2025)
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