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Marketing Management Case Study: San Fabian Supply Company (The Philippiness)
San Fabian(SF) nowadays is standing at the crossroad: MacDowell (MD)will not let SF be its executive distributor any longer, so SF executives must decide whether to handle MD products on a nonexclusive basis or to drop the line completely or other feasible options. ... SF’s company reputation will be influenced and it will take time to make up the loss. ... If exclusive contract is the potential business development constraint to SF, we suggest that SF adjust company strategy for MP only, to do business on non-exclusive basis. Beside the current advantage SF has, such as strong customer relationship, solid industry experience, SF will also keep some MP product within the company. ... If it’s the time for SF to change, setting up a new company is another choice. The advantage will be as the follows: Keep SF’s strategy unchanged and affect no other suppliers; maintain the product lineup of MP’s products; sell products for other companies on a nonexclusive basis in new company; take advantage of SF’s relationship, experience. While the potential risks are: SF would lose MP’s market; some cost is needed to set up a new company.
Option five: Ideally, it might be extremely difficult to renegotiate the distribution terms, San Fabian can argue against MP management based on following reasons.
Approximate Word count = 1076
Approximate Pages = 4.3
(250 words per page double spaced)
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