Case | HBS Case Collection | August 1992 (Revised July 2013)

ChemBright, Inc.

by Janice H. Hammond

Abstract

ChemBright is a small start-up company that manufactures private-label household chemicals. The company sells its products to grocery chains in the New England area. Its strategy is based on a significant logistics-based cost advantage. The primary case decisions are 1) how the company should respond to a price war initiated by a strong competitor, and 2) how the company can continue to exploit its logistics advantages as it pursues different growth alternatives. Acts as an effective introduction to logistics, and, in particular, to the fact that logistics is not a purely tactical function, but can be used as a powerful competitive weapon.

Keywords: Price; Growth and Development Strategy; Logistics; Competition; Competitive Advantage; Chemical Industry; New England;

Citation:

Hammond, Janice H. "ChemBright, Inc." Harvard Business School Case 693-026, August 1992. (Revised July 2013.)