Companies must look beyond sales potential in identifying the right distributor. While the market acquisition is a primary goal, overly focusing on sales can lead to misjudgements in operation handling, integration, and corporate culture development.
In line with the recommendation about unsolicited proposals, companies should choose markets first, then look for potential local distributors; too often, international expansion activities follow the inverse path, creating confusion at the strategic level.
Companies should cooperate with a local distributor that has no mandate from competitors. While reducing commitment, sharing strategic insights with a compromised distributor would be benefit competitors and reduce product positioning, as the local distributor is likely to make up/down selling at its advantage.
Companies shall find a match in terms of culture, vision and operations. By sharing a vision for future development, cooperation will run smoothly, and the achieved stability will lay down the path to more significant investments in strategic marketing. Forward-looking partnerships are functional to create a regional network of distributors that cooperate in developing new FSA and market intelligence.