Link to teaching case:
MacDowell Corp., a producer of construction supplies, terminated its exclusive distribution arrangement with San Fabian Supply Co., its sole distributor in the Philippines for nearly 20 years. Paul Cheng the owner of San Fabian had to decide whether to accept MacDowell's decision or drop the line altogether. The case raises the notion of "relationships" in channels of distribution. MacDowell and San Fabian both felt that they were better positioned to serve the end-user and increase market penetration.