CEO Bill Nichol should in some way work out a surprise warning from Walmart, his biggest consumer, about his biggest and most successful line of product: "We're dropping it." Amongst its hosiery items, the Kentucky Derby Hosiery Co. produces and offers a top quality line of baby socks to Walmart under a pricey permit from another maker, based on genuine, multi-year sales minimums and considerable forward monetary commitments.
Without the Walmart volume and earnings on these top quality baby socks, Kentucky Derby Hosiery Co. deals with monetary distress. In an usually bleak North American fabric environment, Nichol contemplates the most appealing negotiating method and methods to save this item line.
PUBLICATION DATE: April 20, 2010 PRODUCT #: 910043-HCB-ENG
This is just an excerpt. This case is STRATEGY & EXECUTION
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