Points of View
San Fabian has been in the supply and distribution industry for almost three decades. They made its name through the quality line products that the company carried for over 67 firms. But during the early years of the company, 95% of its sales came from imports, however, because of the government’s control on import and somehow to patronize the locally manufactured products San Fabian became the distributor of products that are locally made in the country. Growing as a supply company for construction, the company expand their branch in Cebu and Davao creating more market throughout the Philippines. Sales of the company were coming from the contractors and non-government consumers, to independent dealers called the wholesale customers, and direct to government contractors and agencies. The company was well establish on distribution, its total sales in 1986 was over 320 million pesos all divided from the three groups. Problem Statement
San Fabian Supply Company has been the sole distributor of MacDowell’s product line here in the Philippines. By the year 1987, after the six-year contract of San Fabian’s exclusive-distributor of MacDowell in the country, the corporation decided to terminate its agreement by the end of the year. MacDowell decided that their products would be made available direct from the manufacturer to construction supply dealers throughout the Philippines. For San Fabian, the company is on a dilemma on whether to drop the product of MacDowell’s product line or continue to carry the products as a dealer under the new distribution system of the corporation. Would the company, San Fabian, has the capacity to drop the product line of MacDowell? Since the products of MacDowell has the bigger share of its market, and most of San Fabian’s sales are generated form the products of MacDowell. Areas for Consideration
San Fabian’s must consider:
* Sales force has an overwhelming...