File-It Supplies Inc,
Patsy Akaka is the marketing manager of File-It Supplies which is a file folder manufacturer that has been in business for 28 years. Other primary lines they are file markers, labels and indexing systems. On the other hand 40% of FIS´s file folder business is in specialized lines including oversized blue-print and engineer drawings for several high tech industries. Even though the company has a unique knowledge in the field, Patsy is facing a complicated situation as her main customer has requested for the third time the purchase of FIS products under its own private brand. Business Center as their main customer is a major distributor of office supplies and the strategy of using their own brand is already in more than 45 products in the market. The company accounts for about 30% of FIS´s sales, so keeping this customer satisfied is more than important for Patsy in order to avoid a potential downturn in the business. Strategy Analysis
FIS has been an innovative company allocating filing products in sophisticated niches, offering assortments and products quite difficult to match for the competition. Patsy has avoided in the past the issuance of a private brand for BC under the application of corporate policies focused on limiting the dependence on any or one customer along with the manufacturing of high quality products instead of directing efforts to a low price product orientation. FIS works under a Multi channel distribution concept taking advantage of their local and regional stationers plus the sales volume generated by the 150 stores owned by BC. Nevertheless, local stationers have started to identify ways in which they can affect FIS´s market share by obtaining more competitive prices and one is with the structuring of buying groups. In the mean time BC knows their time is getting shorter as superstore chains are already offering assorted lines with their own brands so the bet on quality relies on the existed added...
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