Fe’nix del Sur, LLC Case Analysis
Fe’nix del Sur is a limited liability company that sources and sells a wide variety of South American and African Artifacts. They originated as a trading post operation in the early 1990’s. They are also a major source of southwestern Indian authentic jewelry and pottery. Fe’nix del Sur, LLC has a full line of replicas of authentic artifacts they sell to gift buyers. Recently, the company was presented a contract that could potentially increase their net sales by $4 million. The decision they are now faced with is whether or not to sign this contract that will increase their net worth and broaden their current positions , but may change the face of the company, the quality of the products they produce, and their market strategy. Problem:
The problem lies within the contract. If Fe’nix del Sur accepts the contract they must increase their replica business significantly in order to work with a mass merchandise department store. This causes an issue because there is a large amount of competition in this market, consumers tastes are changing, and this increase in production will also increase their expenses. Also, this change can affect the quality of their products and put their reputation on the line.
Consider Relevant Information:
Authentic appearance of products (quality)
Doesn’t have the engineering capability to produce the required amount of artifacts Opportunities
New contract will increase revenue by $4million Threats
Lack of artifacts
Political- The market is Africa is unsafe due to many political factors, including low trade freedom and high government regulations. They should establish a production facility in one of the African countries whose government is stable. Opening a larger production facility would help the company with the production process. It...
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