Fe'Nix Del Sur Case

Topics: Contract, Department store, Retailing Pages: 3 (860 words) Published: April 2, 2012
I. Problem Statement
A. Fe’nix del Sur must decide if they want to work with the mass-merchandise department store by tripling its replica production in order to potentially add $4 million in additional sales.

II. Industry Analysis

B. Fe’nix del Sur mainly competes in the Authentic-Collector category; however, the Replica-Ordinary category is beginning to grow in the artifact market.

III. Organizational Analysis
A. Fe’nix del Sur is a limited liability company that sources and sells a wide variety of artifacts, jewelry, and pottery for collectors.
1. Fe’nix started as a trading post in the early 1900’s and are now a reputable dealer in the southwestern pottery and jewelry market.
2. Their distinctive competency is that they have a national reputation as a respected source of South American and African artifacts.
a. Fe’nix received this reputation because they carefully verify the authenticity of every artifact that they receive.
3. Business statistics:
a. Gross sales amounted to $25 million and have been growing at a rate of 20% each year over the last decade.
b. The replicas made by Fe’nix del Sur only account for a small portion of their sales.
4. Fe’nix is also in the business of making replicas but these only account for a small portion of their business.
B. Fe’nix del Sur Company and Retailers
1. Fe’nix distributes exclusively through specialty dealers, firm-sponsored showings, and a few exclusive department stores.
a. Fe’nix del Sur is often the sole supplier to its clients.
2. Issues
a. Political economies in the international market is making it harder to obtain their products.
b. Competition is increasing in the market for authentic artifacts
1. Fe’nix added 3 new buyers in the last 2 years to keep up with this.
c. Competition at a retail level:
1. Customers are sending out their own buyers to deal directly with the Fe’nix...
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