Supplement | HBS Case Collection | May 1992

Fabtek (B)

by Rowland T. Moriarty Jr. and Benson P. Shapiro

Abstract

Presents an urgent order for repair service from an important customer who had purchased an item from a competitor. The item, which TiFab had bid on, went out at a price that TiFab predicted was below the amount necessary to ensure quality manufacture. Now the customer needs to have the unit, part of a much larger production system, repaired and is willing to pay a very high price. The student must choose a price for this order, and decide whether to take it. Should be handed out in class after discussion of the (A) case. A rewritten version of an earlier supplement.

Keywords: Price; Bids and Bidding; Production; Quality; Competitive Strategy;

Citation:

Moriarty, Rowland T., Jr., and Benson P. Shapiro. "Fabtek (B)." Harvard Business School Supplement 592-096, May 1992.