McDowell Corp, a manufacturer of building materials, has stopped its exclusive distribution agreement with San Fabian Power Co, the sole distributor in the Philippines for almost 20 years. Paul Cheng owner of San Fabian had to decide whether to accept the decision of McDowell or drop a line in general. Case raises the concept of "relationship" in the channels of distribution. McDowell and San Fabian both felt that they were in a better position to serve the end user and increase market penetration. "Hide
by Claudine B. Malone, Neil Harrison Source: Harvard Business School 18 pages. Publication Date: February 25, 1982. Prod. #: 582104-PDF-ENG