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Case Study Hospital Supplies

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Submitted By rhea04
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I. PROBLEM City Hospital Supplies, Inc. is faced with the means to develop the Philippine market for the three product lines of Sneider Company for its startup operations.

II. SWOT ANALYSIS
STRENGTHS
• Limited liability of owners

The shareholders are not personally liable for corporate acts and debts. This means that in case of liquidation of the company, if the company's assets are insufficient to meet the liability, nothing is required to be contributed by the owners. Only the owners' contribution is at stake rather than their personal assets.

• Raising capital is easy as approved by stockholders

The company’s form of business organization, corporation, makes possible the raising of large amounts of money from large number of persons. As for City Hospital Supplies, Inc., four other friends of the incorporators would be invited to put in token investments in the firm.

• Exclusive distributorship agreement with Sneider Company

The company had just been awarded the exclusive distributorship in the Philippines for the Sneider line of hospital supplies by the Regional Marketing Director for Asia of the Sneider Company based in West Germany. An agreement followed after months of negotiations. This is an advantage over other companies in the Philippines.

• Good pricing strategy

Positioning the Sneider lines about 15-20% lower than the competition would help capture a major share of local market.

• Location of office space in Makati area

A 70 square meter-office space in the Makati area would be rented and a sealed stockroom of at least 15 square meters area would be maintained. With over 60% of the market on the Metro Manila area, the location will help the company gain easier access to most of its clients.

• Reduced risk of non-performance of exporter/seller through the

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