Familiarize yourself with the attached cases - Yara and Gino. For Yara: Please answer the following question using 3 pages single spaced Describe the details of the current channel arrangement for...

YARA International – channel management
Name of the Student
COURSE NAME University Name
YARA INTERNATIONAL –
CHANNEL MANAGEMENT
YARA International – channel management
P a g e 1 | 5
Present Channel Arrangement

Yara International ASA is world’s largest fertilizer producer. The company had a revenue of
USD 13.9 billion and EBIDTA of USD 2.6 billion respectively in FY 2015. The company
was established in 1905 and demerged as YARA International ASA in 2014. The president
and CEO of the company is Svein Tore Holsether and the senior vice – president of
downstream is Mr Egil Hogna. The company has it’s headquarter in Oslo, Norway. Presently
the company has market presence in Columbia and operates through a channel partner /
distributor setup. Senõr Cesare Gonzales is distributor for the products of Yara International
in Columbia for the past twenty three years and is stubborn on being the local ambassador
and market partner of the company not willing to head to or consider any alternative options
proposed by the organisation. Gonzales had developed a market for the company in Columbia
with about 35 – 40% market share and has almost 80 dealers in the major agricultural regions
of the country that represented the upper crust of the industry. Mr Gonzales was able to build
the trust factor in the fertilizer market with the dealers so much so that the slightly highly
prices but quality products of YARA international were easily sold off the shelves in
Columbia.
Internal Analysis – Yara International
Yara international initially did not have physical presence in Columbia and were only the
producers of the products sold by Gonzales. Gonzales bought the products and resold it as a
distributor and by 2000 the trend of capturing a 40% market share but not improving the
bottom line started worrying the top management of Yara International in the Oslo office.
Especially the then president Mr. Thorleif Enger expressed his concern over the profitability
beyond the mere market share being sizable....