A small bicycle manufacturer situated in Rotterdam in the Netherlands has built up a profitable company selling its products to specialized bicycle retail outlets. Approximately 90% of its sales are in the Netherlands. It has noted a rise in sales from Germany and now wants to exploit this market. The owner cannot decide whether to appoint an agent or a distributor to handle sales in the German market.

Question: What is the difference between an agent and a distributor? What are the advantages and disadvantages for the company of working with an agent? What are the advantages and disadvantages for the company of working with a distributor? Which of these 2 options would you recommend the company to take?