COVID’s impact on small business:
The case of SPR industries a distributor of PPEs
PRESENTED BY :
MIRNAL MANGARAJ
REGD NO : 210402100045
What should Matt do and why?
Options
Maintain status quo
Become a sub-broker
Become a wholesaler
My Preffered Option
Option 2- Become a Sub-broker
Reason
In the time of pandemic customer demand is
changing and according to that company
should be able to supply the products.As
mentioned Matt has seen an opportunity in
the glove market so, I believe maintaining
status-quo may not be a great idea.
Becoming a wholesaler will need a lot of
cash, since SPR industries is not having that
much cash this may not be a wise decision as
well.
Becoming a sub broker will be my preferred option
because everyone is trying to enter this market wherever
they could as there is an opportunity in the current situation.
When there is an opportunity but the company is lacking
in cash the better option will be to become a broker/sub-broker.
From the figure we can understand that brokers would contact
overseas manufacturers for the production run. These
wholesalers or brokers would sell smaller consignments of 1–2
containers to sub-brokers who would provide to smaller distributors
(100–200 cases) , who offered to
the janitorial or custodial service contractors.
The risk involved in this option is medium
among the three. As SPR is already into
janitorial industry they can easily get their
leads among their existing customers.
Thank you!
.
