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With any organization, the constant of change is something that must be dealt with continually. While it may be possible for an organization to enjoy long periods of success and growth without threat to the status-quo, conditions will eventually change that will require adaptation. This is clearly the case with Fe’nix del Sur, an international importer and distributor of South American and African artifacts. Over the past ten years, Fe’nix del Sur has enjoyed 20 percent annual growth in revenue culminating in gross sales of $25 million. Market forces have turned, creating interesting circumstances for the company that started their small base …show more content…
Potential Outcomes: Fe’nix del Sur can strive to secure sourcing for authentic artifacts and work on exclusive and guaranteed distribution channels to protect existing margins and levels of growth. In addition, Fe’nix del Sur can explore the replica markets to expand market share. Failure to protect current markets and proactively develop new markets will result in continued erosion of sales and margins.
With this cursory market analysis, several decision points are evident for the organization. One of the primary decisions Fe’nix del Sur has to contend with is the opportunity for a mass-merchandise department store’s offer to eliminate a competitor’s products from their store and go exclusive with Fe’nix del Sur. Utilizing the DECIDE process to analyze this challenge, we can increase the likelihood of a better solution (Kerin & Peterson, 2010): D) Defining the Problem: Fe’nix del Sur has the opportunity to contract with a mass-merchandise department store to market both authentic and replica items that could radically affect sales and how the company defines itself. E) Enumerate the Decision Factors: A guaranteed initial purchase of $750,000 with an estimate of $4 million of annual sales, with replica artifact production increasing by …show more content…
As Stephan Liozu (2014) posits, one-size-fits all approaches regarding segmentation are simply not relevant anymore. Leveraging the existing network to increase the value of both the replica and authentic lines should be carefully approached by the organization. Competition and legal issues for the sourcing of authentics is contributing to that particular market becoming increasingly segmented. In addition, dilution of the replica market with low-quality knock-offs is a huge challenge to that market segment. As Liozu (20140 states, getting in front of the right customer with the right offering at the right price is paramount to