Case Study: Fe''Nix Del Sur, Llc Essay

678 Words3 Pages
Case Study: Fe’nix del Sur, LLC I. Problem Statement If Fe’nix del Sur, LLC accepts the contract they might make a potential profit of $4 million in additional sales and above the annual growth and be able to broaden the firms current position, but it might not be worth it due to the fact of possible loss of current dealers and customers, and the companies authentic-ness. II. Industry Analysis Fe’nix del Sur, LLC competes in the authentic artifact business. They collect authentic artifacts and replicas and sell them to two main groups; artifact collectors and gift buyers. They currently do not have a full line of replicas due to the fact that they are a ‘specialty’ store. II. Organizational Analysis Business:…show more content…
Disadvantage 1. If they accepted the contract they could potentially loose their current dealers. This could happen due to the fact that their current dealers only deal with authentic. 2. If they accepted the contact they could potentially loose their current customers. This is due to the fact that some of their current customers only buy from special sellers. 3. If they accepted the contract they would loose their current reputation as authentic artifact sellers. 4. If they accepted the contract they would have to cut the prices down. Reject Contract Advantage 1. If they reject the contract they will keep their current dealers. 2. If they reject the contract they will keep their current customers happy. The customers will stay loyal to them due to the fact of their authentic-ness. 3. If they reject the contract they will keep their authentic name and originality. Disadvantage 1. If they reject the contract they will not have the potential to earn an additional $4 million in sales. 2. If they reject the contract their product line will stay the same and they will not have a new larger audience to reach to. 3. If they reject the contract they will not broaden their consumer market. V. Recommendation Fe’nix del Sur, LLC should not sign the contract. The company’s current gross margin is $25 million and the current gross increases by 20% every year. If Fe’nix del Sur,

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