A strategy in which the company enters any other country by providing its products to distributors, is called a distribution strategy.
A strategy is a plan that an organization have adopted to reach its goals, the company make strategies to achieve its targets and goals, the main goal of an organization is to increase revenue while the strategy is the one in which it is described that how the organization will actually achieve this goal.
There are different strategies available and it depends on the board of directors as what strategy they want to follow. The strategy in the scenario is of entering a new market and that also through distributors, this strategy will have low capital investment requirements, as there is no need to open outlets in the South America region.
This strategy is called the distribution strategy.
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An exporting entry strategy is used when the Swedish children’s toy company is sending its toys to other countries in south america to sell through various distributors.
This refers to the sale of products and services in foreign countries that are sourced from the home country.
Most time, the easiest form of entry strategy is an exporting such as direct or indirect method through an agent.
The more complex entry strategy include the global operations which may involve joint ventures, or export processing zones.
Hence, the advantage of the exporting entry strategy is that firms avoid the expense of establishing operations in the new country.
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