Fe’Nix del Sure, LLC
Define the Problem-
With the rise in popularity of not only the company Fe’nix del Sure but that also of the artifact industry, also came the creation and manipulation of many other companies and individuals that have started to not only try to enter the artifact market but develop fakes and replicas and try to pass them off as authentic pieces at a much lower price then that of Fe’Nix del Sur. With these lowered market prices Fe’nix of course struggles to be able to compete with their 100 percent pieces. Not only is the process of finding these authentic artifacts expensive but also having them authenticated tends to also be pricey for the company, which in turn causes the prices on their products to increase. The introduction of all of the fakes and replicas has lowered Fe’nix’s market share and gross sales as of late because they are unable to make a profit by lowering their prices to try and keep pace with these companies. This problem continues to grow and they will have to determine how they will handle the introduction of all the new competitors and products. How can they still offer authentic piece but be able to compete with the lowered prices of competitors?
1) Alternative courses of action- the main alternative action they already have begun is the production of their own replicas within the company. Fe’nix del Sur prides themselves on having 100 percent authenticated artifacts from all over the world but with competitors replicating their product and selling at a lower price they have had to alter their marketing mix, even their production to try to retain their market share. The in house production of these replicas is helping them by having both options within their store. This provides the consumer with a hands on experience of seeing what an authentic piece looks like and also a replica. Also giving them the option to have an affordable piece for your home of an authentic piece of real history you can put in your home. Other alternative courses of action would be using that well established and trusted authenticating company trait to their advantage offering it to consumers to look at pieces either before they buy or right after to determine (if a consumer is looking for an authentic piece) that it indeed is authentic. This will help them to weed out any consumers who are trying to pass off their products as authentic artifacts at a marked down price. Uncertainties- when it comes to uncertainties in this case there are an abundant amount of them. The main of I think goes back to the competitors and the actions that they are and can take in the future. The artifact art is becoming a increasingly popular fade that has been turning away from modern and abstract art according to our book. The main concern of Fe’nix is companies trying to pass off replicas as the real thing at a marked down price. Not only is this an action of the competitors that can harm the gross sales of their company but will also affect the market size. The introduction of all the replicas will make the real authentic pieces worth less especially if the buyer can not tell the difference or is even unaware there is one. Strategic Alternatives- Repositioning or changing products offered by Fe’nix del Sur. By offering new replicas the company will then have the ability to offer both the real authentic piece side by side with a replica at a lower price giving the consumer options. Advertising Campaign for Fe’nix del Sure. Developing a marketing and advertising campaign that takes advantage of their well respected authentication process. Giving consumers the chance to determine if a piece they found is indeed a genuine artifact or not. This will give them the chance to dwindle would some of the companies that may be trying to sell fake products. Tatical Alternatives- Lower Prices- by lowering their prices their gross profit...