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This case study examines Fibertex International, Inc., a Philippine textile company. In 1981, the company's major product line of corduroy was highly impacted by the dumping of cheaper Japanese and Taiwanese corduroy in the local market. With high fixed costs of $8 million per month, the company's president was worried about their corduroy business drying up. The main problem was how to survive in the next six months. Potential solutions included promotion offers, discounted products, and making other fabric lines more popular. The best course of action determined was to offer discounted products.

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Señar, Lorrie Jaye C.
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165 views

Header

This case study examines Fibertex International, Inc., a Philippine textile company. In 1981, the company's major product line of corduroy was highly impacted by the dumping of cheaper Japanese and Taiwanese corduroy in the local market. With high fixed costs of $8 million per month, the company's president was worried about their corduroy business drying up. The main problem was how to survive in the next six months. Potential solutions included promotion offers, discounted products, and making other fabric lines more popular. The best course of action determined was to offer discounted products.

Uploaded by

Señar, Lorrie Jaye C.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Republic of the Phillipines City of Taguig

Gen Santos Ave, Central Bicutan,Taguig City


Taguig City University

CASE STUDY 6 : FIBERTEX INTERNATIONAL, INC.

In partial Fulfillment of the Requirements for the Course Bachelor of Science in


Business administration, Major in Marketing Management

GROUP 6
GROUP LEADER: DALMA, CLARENCE JAY D.

MEMBERS:
ROMANTICO, JASMIN T.
SALVO, EIDELVICEL.
SAN PEDRO, ANNE PAULA JOY L.
SEÑAR, LORRIE JAYE C.
SERVAÑA, CHERILYN DANICA P.
TAYA, JERALDINE A.

BSBA-MM F2021
Republic of the Phillipines City of Taguig
Gen Santos Ave, Central Bicutan,Taguig City
Taguig City University

CASE STUDY 6 : FIBERTEX INTERNATIONAL, INC.

I. CASE SUMMARY:
FIBERTEX INTERNATIONAL, INC was a textile company which had undergone
expansion and modernization in 1979, was remarkable during that year. Corduroy was the
major product line among the three fabrics being produced by the company. For the next
consecutive years, their major product, Corduroy, was highly the demands from the market.
However, trouble began in July 1981, when Japanese-made corduroy started flooding the
market at half the price prevailing among local competitors. Taiwanese corduroy selling at 10
percent lower than Japanese corduroy, although it was the consensus among Fibertex’s
production people that the quality of Taiwanese corduroy was inferior to the Japanese.
Fibertex corduroy, they affirmed, was comparable to the Best Japanese kind. Company fixed
costs were about ₱8 million per month, and Mr. Razon was worried that the dumping of
corduroy by Japan and Taiwan would totally dry up their business on corduroy.

II. MAIN PROBLEM:


HOW THEY ARE GOING TO SURVIVE FOR THE NEXT SIX MONTHS?

III. SUB PROBLEM:


 COMPETITION AMONG INTERNATIONAL AND LOCAL TEXTILE
COMPANIES.
 LOW DEMAND ON HIS OTHER FABRIC LINE (COTTON-TETORON, MAONG
OR DENIM)
 HIGH DEMAND ON CORDUROY

IV. SWOT ANALYSIS:


i. STRENGTHS
 HIGH QUALITY
 DURABLE
 LOCAL PRODUCT
Republic of the Phillipines City of Taguig
Gen Santos Ave, Central Bicutan,Taguig City
Taguig City University

ii. WEAKNESSES
 HIGH PRICE
 NOT COMPETITIVE ENOUGH
 PRODUCT SUSTAINABILITY

iii. OPPORTUNITIES
 HIGH DEMAND
 RECOGNIZE INTERNATIONALLY
 OTHER FABRIC LINES GETS POPULAR

iv. THREATS
 COMPETITORS
 SMUGGLING

V. ALTERNATIVE COURSES OF ACTION


 PROMOTION OFFERS
 DISCOUNTED PRODUCTS
 MAKE THEIR OTHER FABRIC LINE POPULAR

VI. BEST COURSE OF ACTION


DISCOUNTED PRODUCT

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