Commercial Advantages and Disadvantages of the Overseas Distributor Business Model
Sort, drag, and drop the advantages or disadvantages to prioritize them.
Advantages | |
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1 | Access to local market knowledge and customer base |
2 | Reduced investment and operational costs |
3 | Shared financial risks and responsibilities |
4 | Ability to leverage distributor's existing network |
5 | Lower logistical challenges due to local presence |
6 | Faster market entry and expansion |
7 | Reduced legal and regulatory complexities |
8 | Mitigated currency exchange rate risks |
9 | Access to government incentives and subsidies |
10 | Opportunity for business diversification |
Disadvantages | |
---|---|
1 | Dependency on the distributor's performance |
2 | Limited control over marketing and sales strategies |
3 | Potential conflicts of interest with the distributor |
4 | Language and cultural barriers |
5 | Difficulty in maintaining consistent brand image |
6 | Potential loss of intellectual property |
7 | Challenges in managing and enforcing agreements |
8 | Possible impact on profit margins |
9 | Need for continuous monitoring and support |
10 | Potential conflict between distributors |
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