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8 April, 05:36

2. A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumption of specialty chemicals. What sort of distribution network should this company utilize?

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  1. 8 April, 05:52
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    Indirect Distribution Sales Channel

    Explanation:

    The specialty chemical company has five companies that are the consumers of the specialty chemicals. Therefore, it is a Business to Business transaction between the specialty chemical company and their target business customers.

    The company should utilize an indirect distribution network. It can be sales operations only where the chemical is manufactured and being supplied to companies in Brazil. There should be carefully selected distributors who have their locations near the five companies. This network, will reduce lagging time of order delivery and sales efficiency will increase.
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