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Abstract: The distribution channel represents a group of independent organizations that are implicated in the processes of making available to the customers of a product or service designated to the consumption. The distribution channels have the role of transferring goods from producers to the final consumers. This is reducing the period of time and the distance that are separating the goods from their users. In general, a multinational company can find itself in one of the following situations: a) the company is selling directly to its clients, by sending sales representatives to the final consumers residence; b) the company is operating through independent intermediaries, having a local activity in the majority of cases; c) the company is using an independent distribution system, that has a regional or global coverage.
Key words: distribution strategy, distribution channel, international market, transnational companies
JEL classification: M31, F23
1. Introduction
The terminology characteristics (Jobber, 2007) are referring to the length and the depth of the distribution channel taken into consideration by a producing company:
a) The length is determined by the types of different intermediaries that are hired in the actual distribution of the company's product. The classical form consists in: producer - wholesale dealer, retail dealer, and consumer.
b) The depth is determined by the space dispersion of the selling points, meaning how close they are situated compared to the consumption points. For instance, the consumption points of the industrial goods are relatively concentrated, so the depth is low, but in the case of food chains the depth is high.
2. Decisions regarding the international distribution
Any multinational company has to learn to exploit all potential sources of competitive advantage. Among these an important role is played by the distribution. The international distribution system has to meet the following requests:
a) Make the product available to the potential consumers;
b) To facilitate their information about the commercialized product;
c) The producing company has to have good relations with its business partners
d) To match with the strategic position of the company.
In taking a decision about the distribution system that a company is going to use on foreign markets, the producing company has to take into consideration different geographical areas, different distributor's expectations, difference among the competitive structure...