Distributor-led Model
A distribution strategy where the majority of the sales and delivery responsibilities are handled by distributors.
Implications
A business model where the primary responsibility for sales, distribution, and customer engagement lies with the distributors rather than the manufacturer, often used to leverage local market knowledge and reduce direct operational costs.
Example
Example: A global tech company adopts a distributor-led model in emerging markets, relying on local distributors to handle sales, marketing, and customer support, allowing the company to focus on product development and innovation.
Related Terms
Different from a direct sales model, where the company controls sales and distribution, a distributor-led model delegates these responsibilities to external partners.