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San Fabian Supply Co Philippines Case Solution

Solution Id Length Case Author Case Publisher
1942 1284 Words (4 Pages) Neil Harrison Harvard Business School : 582104
This solution includes: A Word File A Word File

In order to approach Verenez, again, San Fabian needs to show them value of perusing relationship with them. It should have detailed analysis or record of taking the brand of McDowell to such heights. Then there should be promise based on detailed strategic plan for convincing them to take their brands to such heights. Moreover, San Fabian can show them the value by giving them a brief introduction of their widespread approach. It should be notified that the middle management should be actively involved in negotiations, and they should get back time and again to get responses from their targets.

Following questions are answered in this case study solution

  1. Situation Analysis Alternatives - Briefly discuss alternative solutions that you considered - but not choose-in your analysis and explicitly recognize the pros and cons of each. If possible, show that the alternatives are financially not viable. 

  2. Recommendation - Describe and critically evaluate your recommendation - you should list pros and cons of your chosen course of action.

  3. Implementation Plan - Develop a plan for implementing the alternative you recommend. The implementation should be practical. Consider costs and benefits. These are essential elements and sometimes require making some assumptions - make the assumptions necessary to put forth your plan.

Case Analysis for San Fabian Supply Co Philippines Case Solution

1. Situation Analysis Alternatives - Briefly discuss alternative solutions that you considered - but not choose- in your analysis and explicitly recognize the pros and cons of each. If possible, show that the alternatives are financially not viable. 

As discussed in the case, San Fabian was handling a diverse product line of McDowell. This product line included Pyrolite corrugates sheets, Pyrolite flat sheets, internal partition, ceilings and pressure pipes. One of the options that San Fabian can pursue is importing this product line from other countries. On the other side of it, Philippines are characterized to have high duties, and if san Fabian imports this product line it will not be profitable for the organization. However, importing these items will make it independent of any other suppliers, within Philippines, having high bargaining power. Importing these items will require high marketing efforts to push these items through the pipe line to get make it successful and charge premium.

Addition to imports, it can get cast iron pressure pipes from different producers. If San Fabian is getting these items, it would not be very wise. Reason being the market size of these products is very small, only 15%. Moreover, there are many negatives associated with this option. Firstly, this product has a lower market, and it is difficult to gain market share within the presence of other competitors. Secondly, these pipes are not competing at the quality and offerings provided by the Permalite. It has a shorter life span as compare to Permalite, its fitting has some problems, it's more expensive and last, but not the least, and it has lower working pressure. It makes harder for any organization to make it acceptable to the market. One of the reasons that San Fabian can’t capitalize over the market or win the deal with producers is that the producers themselves are a distributor of these products. If they are giving the distribution to San Fabian they will have to provide San Fabian with margins that will cost them extra, so it’s not wise for San Fabian to hunt for this deal.

The plastics pipes can also be an option for San Fabian to order, but there are many issues attached to these pipes. Pushing these pipes down the line can make San Fabian reputation suffer, because of the fact that it’s against the value or mission of San Fabian for providing the quality material for construction. As these pipes can’t withstand high pressure and their diameter is less than that of standard pipe.

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