I. INTRODUCTION
Fairchild Water Technologies was founded in 1980 by Eugene Fairchild. The company’s first product was a desalinator used by mobile home parks in Florida to remove salt from well water supplied to residents. As the desalinator became a huge success, the company expanded into the coastal region’s adjacent to the company’s headquarters in Tampa, Florida, and then to desert areas in the southwestern United States. By 2002, they had expanded their product lines to include desalinators, particle filters, ozonators, ion exchange resins, and purifiers. Their products were generally priced higher than their competitors, but regarded to be superior in terms of performance and quality.
In the year 2000, Fairchild Water Technologies was expected to have revenues of $400 million, and an estimated profit of $50 million. For the past five years, they posted a 12 percent growth in their annual sales. In 1985, the company managed to start its exports to Mexico, Belize, and later to water bottlers in Germany. By 1990, due to the rapid growth in export sales, the company established its International Division. Sales in the International Division grew to $140 million in 2000. About 50 percent of International sales came from Latin and South America, $30 million from Europe, and $40 million from South Asia and Australia.
In 1995, the company’s Frankfurt, Germany office stressed the need to develop and market products that target consumer households. The first idea was to develop a home water filter. By late 1995, the company was able to develop two models that were designed in the U.S. and introduced in Germany, Poland, Hungary, Romania, the Czech Republic, and Slovakia. The products were greatly successful. But, the quality of water in developing countries required a purifier instead of filters. Thus, in late 1999, company executives initiated the development of a water purifier which was given the brand name