Chembright’s Case
Chembright’s Case
1.) What is the main decision confronting Chembright? What happens if they do nothing?
The main decision for Chembright is in regards to the pricing of their products specifically bleach, which is Chembright’s main product, and how their main competitor R.J. Poulson is pricing theirs bleach in order to get rid of the competition. This has caused Chembright to be unable to compete at these prices since there isn’t any profit margin for them if they lower their price as R.J. Poulson. Therefore Chembright has to stop the price war with R.J Poulson to be able to maintain their products in these markets. Now Chembright is facing the issue of how to retain their customer’s without lowering their prices, since regardless of any brand loyalty customers will always want to pay less for a product therefore meaning the loss of a large portion of Chembright’s sales. Likewise if Chembright does do anything about this issue, eventually they will lose their business leading to the death of company if these lost customers don’t come back to Chembright. Therefore doing nothing is not a solution or alternative at all.
2.) What potential and feasible options are available to Chembright?
The most feasible option would definitely be the antidumping petition, which would require the involvement of the U.S. Laws since the prices that R.J. Poulson is setting are not fair and at the same time represent the threat of Chembright of ultimately losing their business. This option would be the most direct and quickest way of this issue however, it may involve long process of investigations and lawyers involved as well, which ultimately would represent costs and not fully guarantee that it would work at the end. Therefore a second option is to increase their operations in their other facilities throughout the USA to increase their profit and those markets and ultimately dismiss the market involved with Poulson. Lastly Chembright can keep the bleach as long as possible in
1.) What is the main decision confronting Chembright? What happens if they do nothing?
The main decision for Chembright is in regards to the pricing of their products specifically bleach, which is Chembright’s main product, and how their main competitor R.J. Poulson is pricing theirs bleach in order to get rid of the competition. This has caused Chembright to be unable to compete at these prices since there isn’t any profit margin for them if they lower their price as R.J. Poulson. Therefore Chembright has to stop the price war with R.J Poulson to be able to maintain their products in these markets. Now Chembright is facing the issue of how to retain their customer’s without lowering their prices, since regardless of any brand loyalty customers will always want to pay less for a product therefore meaning the loss of a large portion of Chembright’s sales. Likewise if Chembright does do anything about this issue, eventually they will lose their business leading to the death of company if these lost customers don’t come back to Chembright. Therefore doing nothing is not a solution or alternative at all.
2.) What potential and feasible options are available to Chembright?
The most feasible option would definitely be the antidumping petition, which would require the involvement of the U.S. Laws since the prices that R.J. Poulson is setting are not fair and at the same time represent the threat of Chembright of ultimately losing their business. This option would be the most direct and quickest way of this issue however, it may involve long process of investigations and lawyers involved as well, which ultimately would represent costs and not fully guarantee that it would work at the end. Therefore a second option is to increase their operations in their other facilities throughout the USA to increase their profit and those markets and ultimately dismiss the market involved with Poulson. Lastly Chembright can keep the bleach as long as possible in
References: McLaughlin, Timothy. Supply Chain Management Cases and Readings. N.p.: McGraww Hill, 2013. Print.