Cooperation With Distributors in Arabic-Speaking Countries

What is it about?

In Arabic-speaking countries, Swiss exporters often work with independent distributors to sell their products. The market potential of these countries is too small to justify wholly owned subsidiaries. The leadership of independent distribution partners also selling other manufacturers’ products is, therefore, a key success factor for Swiss exporters. However, the peculiarities of the Arab business world remain alien to many Swiss managers. This chapter aims to determine the challenges involved in cooperating with distributors in Arabic-speaking countries, and how these challenges can be dealt with. Based on a survey of Swiss exporters, the three phases of cooperation with distributors are investigated: selection, motivation, and long-term cooperation. Although all three phases are important, the results show that long-term cooperation is the main challenge. Obstacles are that distributors fail to keep promises, receive negative feedback from customers, or do not carry out activities in the expected quality. Personal relationships are considered a key success factor for succesful long-term cooperation. However, according to the survey, cultural differences remain a source of misunderstandings and mistakes. These are less about religious regulations than about a different understanding of time, a lack of commitment, and the different values associated with personal relationships. The authors conclude that the motives for action in the Arab world differ from those in Switzerland and are thus often misinterpreted by Swiss managers.

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Photo by Kate Trysh on Unsplash

Photo by Kate Trysh on Unsplash