Sorzal Distributors

Topics: Marketing, Department store, Market segmentation Pages: 4 (1387 words) Published: February 21, 2007
Sorzal Distributors 2

Identification of the Strategic Issues and Problems
Sorzal distributors is a nationally recognized importer and distributor of a wide variety of South American and African artifacts and a major provider of southwestern Indian authentic jewelry and pottery. Based in Phoenix, Arizona, the company is a well established organization that has built its reputation on customer satisfaction through the verification of every piece of artifacts it imports. Expansion of the company led to establish offices in L.A, Miami and Boston where new products were included to the company's line of products like pre-Columbian artifacts from Peru and Venezuela as well as burial artifacts from Africa. To respond to its customers' requests, Sorzal included replicas of authentic artifacts that fulfill the needs of gift buyers and consumers seeking decorative items. (R. Kerin, R. Peterson (2005). Strategic Marketing Problems cases and comments (10th Ed.). The company witnessed an increase in total sales and a wide distribution of its products line. However, the increased competition and the limited supply of its authentic products forced the company to consider the offer of a mass-merchandise department store to carry a line of its products. The offer made to Sorzal seems interesting since it will boost the company annual sales by an estimated $ 4 Million and allow the artifacts dealer to strengthen its position in the market and compete effectively with its rivals. But accepting this offer will make Sorzal Distributors face a major constraint represented in the fact of tripling their production of replicas which used to represent a small fraction of the company's total sales. (R. Kerin, R. Peterson (2005). Strategic Marketing Problems cases and comments Sorzal Distributors 3

(10th Ed.) In fact, Sorzal Distributors would not have a problem in increasing their production of replicas but could suffer serious consequences by doing so. For this reason,...

References: • R. Kerin, R. Peterson (2005). Strategic Marketing Problems cases and comments (10th Ed.)
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