|
Advantages |
Disadvantages |
| Sales Representatives |
- Local knowledge of customers
- Local knowledge of laws and regulations
- Payment to agent only on sales commissions
|
- High cost of product promotion
- Invoicing and credit control is in house; not with the agent
- Inventory is not with agent
- Unable to service product after sale
|
| Distributors |
- Local knowledge of customers
- Local knowledge of laws and regulations
- Low market expansion and visibility costs
- Can service product after sale
- Reduced time to market
|
- Possible brand image dilution
- Low control over distribution vehicles
- Low control of sales prices
- Conflict of interests
|
Licensee |
- Spreading risks and costs
- Very low manufacturing and distribution costs
|
- Verification of licencing agreement
- Low control over quality
|
Strategic Alliance |
- Low development costs
- Greater information exchange
|
|
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