Sales Channel Transformation

The significance of a transformation from indirect sales channels into direct sales subsidiaries in the machinery industry increased constantly because of a high internationalization trend prevailing within the whole industry. This book provides a general guideline for a sales channel transformation in the machinery industry. It investigates which factors favor a transformation process from an indirect sales channel like dealers, outside agents or third party distributors into a wholly owned subsidiary in a foreign country. The importance of this topic increases due to the fact that mechanical engineering companies with HQ’s in Austria and Germany face the challenge of increasing their international presence. The research part of this study shows how to make proper decisions in terms of market and country selection in order to secure long-term success of the company. Also the necessary proceedings in the establishment process are investigated in detail. The book is based on a profound literature review and the experience of top managers of this industry.