• Facebook
  • Twitter
  • Instagram
  • Youtube
  • Linkedin
AIM Leader
  • Cover Story
  • Features
  • AIM News
  • Alumni News
  • Multimedia
  • Life At AIM
  • Contact
  • Give
Select Page
Share on FacebookShare on Twitter
Articles

Bhanton Towels: The Pricing Dilemma of an Exporter

by AIM Research and Publication

Research by: Dominique Turpin, Sandeep Puri, & Ma. Theresa P. Mañalac

 

Abstract

In April 2022, Bhanton Towels (Bhanton), an export-oriented company in the Philippines, received an order from AliTex Enterprises (AliTex), China. One of Bhanton’s major customers in Europe had just cancelled an order for 200 metric tons (MT) of towels because of the Ukraine-Russia conflict. Since the conflict was a case of “force majeure,” the cancellation terms could not be negotiated. These two events presented Bhanton’s management with a major dilemma; the company needed additional orders to achieve its monthly production targets of 2,000 MT for May and June 2022. However, the low price requested for the order from AliTex could potentially have a long-term impact on the company’s profitability and reputation in the market. It might also affect its relationship with key accounts like Walmart in the US and IKEA and Sainsbury’s (in Europe) if they were to hear of it. AliTex offered Bhanton an opportunity to enter new markets like Australia, Canada, China and New Zealand. Could the company sell its towels at ₱190 per kg to AliTex. And if not, what was the minimum possible rate? The company was also exploring other potential sales and customer acquisition strategies to increase its monthly sales volume by 1,000 MT and reduce dependence on retail customers.

 

To cite this case: Turpin, D., Puri, S., & Mañalac, M. T. P. (2022). Bhanton Towels: The pricing dilemma of an exporter. IMD-7-2393. https://www.imd.org

To access this case: https://www.imd.org/search/searchresults/?Term=Bhanton%20Towels:%20The%20pricing%20dilemma%20of%20an%20exporter&Sort=Date&Filter=category:publications;authors:%27Turpin,%20Dominique%27

 

Related Articles

Faculty
December 8, 2022
An Order Allocation Methodology Based on Customer Repurchase Motivation Drivers Using Blockchain Technology
Research by: Qi Sun, Ming Dong, & Albert Tan   Executive Summary In the e-commerce market, the cost of customer acquisiti...
by AIM Research and Publication
Faculty
November 24, 2022
Portfolio Optimization Considering Behavioral Stocks with Return Scenario Generation
Research by: Michael N. Young, TJ Troy N. Chuahay, Yen-Hsien Lee, John Francis T. Diaz, Yogi Tri Prasetyo, Satria Fadil Persada, &...
by AIM Research and Publication
Centers
October 28, 2022
Re-thinking Governance in Tourism: Harnessing Tourism’s Post-Covid-19 Economic Potential
Research by: John Paolo R. Rivera, Eylla Laire M. Gutierrez, & Fernando Martin Y. Roxas Executive Summary In reviewing existin...
by AIM Research and Publication
AIM Logo

Learn how business works in Asia with the people who practice it.

  • Cover Story
  • Multimedia
  • Features
  • Life at AIM
  • AIM News
  • Contact
  • Alumni News
  • Give
Copyright © Asian Institute of Management 2021 | Privacy Policy
  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • Linkedin