An exclusive distributorship agreement entered into by a manufacturer (the principal) with an organization can constitute a strategic alliance. On the other hand, some companies appoint a huge number...

An exclusive distributorship agreement entered into by a manufacturer (the principal) with an organization can constitute a strategic alliance. On the other hand, some companies appoint a huge number of partners to resell their product, in a form known as intensive distribution. Why would a principal restrict themselves to one partner alone when more distributors may provide a wider breadth of coverage?