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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