Abstract
Companies implementing a strategy based on entering foreign markets have to make a decision on choosing an adequate international distribution channels. Well implemented international distribution system in export-oriented companies can help them improve their competitiveness and better position their products in foreign markets. It is for this reason that the subject of this research paper is to analyze the factors of international distribution from the aspect of international business strategy of SMEs. The research conducted covered various factors related to international distribution strategies such as the ability to deliver international goods quickly and continuously, the established adequate international distribution network, the ability to respond quickly to international partners orders and the effective management of international distributors or agents. The survey was conducted in 50 companies that export various types of products on the territory of the Republic of Serbia. The results of the regression analysis indicate that an adequate distribution network has an impact on sales volume and foreign market share, so that we can conclude that the proper selection of an appropriate distribution network can contribute to enhancing the export potential of the company.
Highlights
When focusing on the international market, a company is faced with decisions on how to enter a foreign market, through which channels and how to manage marketing logistics (Menkinoski, Risteska and Ilieska, 2000)
A much smaller percentage of companies (38%) believe that the activity of an established active international distribution network is fully present in their business
It is evident that some companies lack effective management of international distributors or agents because as many as 32% of companies say that this feature is not present at all in their business, and 52% of surveyed companies consider it to be present in the medium degree, with just 16% of surveyed companies believe that it is fully present
Summary
When focusing on the international market, a company is faced with decisions on how to enter a foreign market, through which channels and how to manage marketing logistics (Menkinoski, Risteska and Ilieska, 2000). The word "channel" comes from the French language, and in international marketing activities it indicates the path that a product travels from the place of production to the point of consumption. Most producers who participate in the international business transactions are not directly engaged in the direct sale of their products in the international market. In bridging the existing geographical gap between producers and consumers in the international market, international distribution channels represent an effective tool (Grubor, 2008). International distribution is an activity that overcomes all the differences in space and time between production in one country and the use of their products abroad (Previšić and Ozretić Došen, 2000). Grubor (2005) confirms that the modern business practice and the long-term stability of international distribution International distribution is an activity that overcomes all the differences in space and time between production in one country and the use of their products abroad (Previšić and Ozretić Došen, 2000). Grubor (2005) confirms that the modern business practice and the long-term stability of international distribution
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