The Horse Place is a retailer that sells horse tack (saddles, saddle pads, bridles, reins, etc.) and supplies (grooming products, vitamin supplements, leg wraps, etc.). The Horse Place has 15 stores in the southern part of the US. Its promotional strategy relies upon online advertising, social media advertising, and print ads in publications such as Horse and Rider, Horse Illustrated, and Dressage Today.

The Horse Place sells exclusively in the US domestic market. This is also where its suppliers have traditionally been located. However, the retailer's owner, Mary Jones, has recently begun sourcing from suppliers in India. She considers their products to be excellent quality at about half the price of the domestic vendors.

The interaction with Indian vendors prompted Mary to consider selling her merchandise in foreign markets. She believes other countries have a demand for the kinds of products carried by The Horse Place. A cursory analysis of secondary sources resulted in the conclusion that Argentina, Brazil, Mexico, France, Germany, Russia, and the United Kingdom represent the most promising opportunities.

Mary decided that she would continue using her current promotional tools, while also developing a company website through which sales can be conducted. However, she knows this will not be enough to achieve a high level of sales. She realizes that selling to international markets requires her to use new channels of distribution. Mary must decide between using an indirect strategy or a direct strategy for the foreign markets.

1. What are the advantages and disadvantages of using indirect and direct strategies?

2. If Mary uses an indirect strategy, will she need to use the services of a freight forwarder? If so, what specific services?

3. Are there any other countries, besides those mentioned, that might be important markets for The Horse Place's products?

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1 Advantages and Disadvantages of Indirect and Direct Strategies Indirect Strategy Advantages Access to existing distribution networks Indirect strategies often involve partnering with local distribut... View the full answer