You work for a pharmaceutical firm seeking to open up new international markets by partnering with various local distributors.The different distributors within a country are stronger with different market segments (hospitals, retail pharmacies, etc.) but also have substantial overlap.
Please answer in a short paragraph for each question listed below
- In Egypt, you calculate that the annual value created by one distributor is $60 million per year,but would be $80 million if two distributors carried your product line. How much of the value can you expect to capture?
- Argentina also has two distributors with values similar to those in Egypt, but both are run by the government. How does this affect the amount you could capture?
- In Argentina, if you do not reach an agreement with the government distributors, you can set up a less efficient Internet-based distribution system that you would generate $20 million in value to you. How does this affect the amount you could capture?
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