Evaluating your partners in Russia

The criteria MNCs use to evaluate their distributors are designed to maximize the speed and breadth of initial market penetration, but over the long term incentive distributors to seek short-term gain rather than support their foreign partner in establishing a strong market presence.

Implications for MNCs:

  • As a result of this evaluation process, most MNCs have developed distributor relationships that are optimal in the early stages of market entry, but over time become less useful
  • However, many companies fail to upgrade and restructure these relationship to position themselves for long-term growth.

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Emerging Market View: What Our Analysts Are Reading

On Thursday, EU diplomats will consider increased Russian sanctions. The sanctions include a proposal to ban all Europeans from purchasing any new debt or stock issued by Russia’s largest banks, according to the Financial Times, and FSG’s Head of Research for EMEA says it’s time for multinationals to make contingency plans. “If some or all of the proposed measures are approved by […]

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