Use of Customer Value Proposition as A Tool to Commit Overseas Distributors
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Currently, with the development of economies, an increasing number of companies intend to expand businesses outside of their original territories. However, as a countermeasure in market development, business expanding process has a large number of challenges. Indeed, even if companies entering the target market successfully, the risks and problems still exist over time. As a matter of fact, it is very common to see that companies would like to find a distributor who will take care of fussy businesses in target markets. To some extent, how to convince qualified distributors to cooperate and be motivated in future sales is significant for new market entrants. The objective of the thesis is to help companies entering new markets to figure out a solution with regards to how to convince distributors in target markets to start cooperation and be motivated in future sales. In this thesis, customer value proposition and the analysis of distributors from an academic perspective are core content. The framework is built on the combination of both concepts. What is more, the value of end customers as a new weapon can significantly increase the negotiation power of companies. The main finding of the thesis is the scenario building with regards to how salespeople approach, negotiate, convince and reevaluate distributors step by step. This thesis proposes a four-step weapon in negotiations which have corresponding solutions based on the attitude of distributors. To some extent, the proposed four-step weapon in negotiations can give helpful tips for companies who would like to get into international markets.