Marketing Performance of Fabtek - Essay Example

Moreover, it leaves an opening for Fabtek to expand its client base. Worldwide Paper is a large integrated producer of pulp and paper products. It bought equipment worth 2.4 million dollars from Fabtek coming in third after Pierce-Pike. In addition, they are aspiring to develop a line of proprietary items leaving Fabtek eyeing the deal. Kathco the fourth of Fabtek’s orders is a metal refinery that manufactures its titanium electrodes. Having great relations with Fabtek, it solicited some of its business during 1991. Unfortunately, for Fabtek, this was a solitary deal and leaves no room for future business with Kathco. 

Fabtek’s principal business is the fabrication of titanium equipment for industrial corrosion-resistant appliances. Fabtek currently has four major orders, Refco, Pierce-Pike, Worldwide Paper and Kathco. Refco in 1990, purchased products worth 4.5 million dollars and in 1991, 6 million dollars worth of products and an additional 6 million dollars for the Super Whooper. These statistics have been overwhelming in terms of comparison between the four clients, thus making Refco the most profitable.

In terms of long-term deals, Pierce-Pike and Worldwide Paper offer much more in terms of business expansion and long-term profitability. Pierce-Pike is currently dissatisfied with its two major sources and could be looking for a new source, an avenue for Fabtek to successfully explore. On the other hand, Worldwide Paper is looking to develop proprietary items a deal that could rake in the profits for Fabtek. 

When considering long-term development, Refco certainly qualifies as a profitable client. Unfortunately, despite the monetary benefits, Refco offers little hope to Fabtek. They seem to see Fabtek as a temporary source for fulfilling their needs and do not even hint at long-term expansion. Similarly, the deal with Kathco was a solitary requirement and offers no more than a short-term profitable venture.

On the other hand, concentrating on either or both businesses from Pierce-Pike and Worldwide Paper seems a more profitable deal in terms of longevity. Both companies have expressed their desires to expand the business and could include Fabtek if it displays successfully its capabilities in production and service. 

Currently, the most important customer seems to point towards Pierce-Pike since it brings in not only larger sums of money in comparison to Kathco but also desires an expansion in terms of changing sources that it is currently dissatisfied with. If Fabtek seeks to continue long-term business with Pierce-Pike, it will have to enhance its productivity level and some of its services such as delivery of products. If Fabtek seeks to look elsewhere, another great opportunity in terms of Worldwide Papers exists. Though the company is bringing in lower revenues, it is more significant in terms of its requirements and plans for future business expansion. Not only does it aspire to begin a new production line of proprietary items but could also allow Fabtek the opportunity to add and develop new capabilities that would ensure the company’s survival. 

Mr Stanley Ho is currently the President of Fabtek Industries. During mid-June of 1991, Fabtek was facing unprecedented problems and Mr. Ho conveniently left all decisions to the company’s marketing vice-president, Amy Vitali, and Fabrication’s Division vice-president of Operations, Rob Lightfoot. The only contribution he made to the situation was to inform both Vitali and Lightfoot of the tight schedule and that if either business venture was to be successful, the decision needed to be quick to enable faster processing of the orders.

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