Case Analysis- Fe’nix Del Sur, Llc
Subject: Case Analysis- Fe’nix del Sur, LLC
I. Problem Statement The company is evaluating whether to sign a contract to supply large amount of replicas to mass merchandiser in order to gain profits of $4 million in addition; also have the opportunity to expand company’s position by carrying wider lines of products.
II. Industry Analysis Fe’nix del Sur is mainly competing in the industry offering authentic artifacts and replicas. The two main types of end-users are artifact collectors and gift buyers. Because replicas only stands small portion of the company’s business, the company is now using its most focus on selling authentic artifacts to the collectors.
III. Organizational Analysis Fe’nix del Sur is a limited liability company that supplies a various selection of South American and African artifacts for artifacts collectors; it is also a source of Southwestern Indian authentic jewelry and pottery. The company has strong reputation for being the most respected source of artifacts for collectors. Selling replica is only a small portion of their business. By accepting the contract, the company will have to add supplying a full line of replicas to its current business definition. The company has gross margin sales of $25 million and it has been growing. Signing the contract will bring the potential of $4 million in sales, but it demands a large supply in replicas. The competition is really strong in this market. However, Fe’nix del Sur uses its exclusive authentic artifacts to make distinction between itself and other suppliers. Retailer whom currently carries their products has close relationship with the company. By accepting the contract, the retailer who only deals authentic artifacts may decide not to carry Fe’nix del Sur’s products anymore, because the company’s reputation maybe ruined by supplying large amount of replicas.
IV. Alternatives
A. Accept the contract
1. Advantages
a. It brings the potential of making
I. Problem Statement The company is evaluating whether to sign a contract to supply large amount of replicas to mass merchandiser in order to gain profits of $4 million in addition; also have the opportunity to expand company’s position by carrying wider lines of products.
II. Industry Analysis Fe’nix del Sur is mainly competing in the industry offering authentic artifacts and replicas. The two main types of end-users are artifact collectors and gift buyers. Because replicas only stands small portion of the company’s business, the company is now using its most focus on selling authentic artifacts to the collectors.
III. Organizational Analysis Fe’nix del Sur is a limited liability company that supplies a various selection of South American and African artifacts for artifacts collectors; it is also a source of Southwestern Indian authentic jewelry and pottery. The company has strong reputation for being the most respected source of artifacts for collectors. Selling replica is only a small portion of their business. By accepting the contract, the company will have to add supplying a full line of replicas to its current business definition. The company has gross margin sales of $25 million and it has been growing. Signing the contract will bring the potential of $4 million in sales, but it demands a large supply in replicas. The competition is really strong in this market. However, Fe’nix del Sur uses its exclusive authentic artifacts to make distinction between itself and other suppliers. Retailer whom currently carries their products has close relationship with the company. By accepting the contract, the retailer who only deals authentic artifacts may decide not to carry Fe’nix del Sur’s products anymore, because the company’s reputation maybe ruined by supplying large amount of replicas.
IV. Alternatives
A. Accept the contract
1. Advantages
a. It brings the potential of making