Commercial Advantages and Disadvantages of the Overseas Distributor Business Model
Sort, drag, and drop the advantages or disadvantages to prioritize them.
| Advantages | |
|---|---|
| 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 |
Table copied to clipboard!