Lancer Gallery Case Study Essay

618 WordsApr 7, 20133 Pages
MAR 4804 Spring 2013 CRN 10215 Case study #3 (Lancer Gallery), 04/10/2013 Lancer Gallery sources and sells a larger assortment of African and South American artifacts, as well as Native American jewelry and pottery. Their headquarters is out of four different major U.S. cities, but Lancer calls Phoenix, Arizona home. They originated in the 1900s and developed a wonderful reputation as one of the most respected sources of artifacts and replicas. Lancer Gallery being such a large company in a specialized industry it can have its challenge. Lancer Gallery’s main challenge is to decide whether or not they want to risk the possibility of repositioning their selves. A mass merchandise department store chain has presented the…show more content…
This has hurt negotiations with current buyers, causing gross margins to slip due to the aggressive competition. Being known for quality is important, but the brands creating cheaper replicas, artifacts, and jewelry still have a place in the market. Lancer is currently a limited distribution company who sell to specialty dealers and department stores. Due to larger acceptance in return creating higher demand they added three new buyers in the last couple years. Lancer Gallery’s relationship with their existing distributors is not currently strained, but they notice that some retailers are carrying other brands at lower prices. It is not to say that the quality is comparable, but it gives Lancer something to think about as far as whether or not that want to compete more closely to some of these other brands. Should they stand out above the crowd or conform? Lancer Gallery should not reposition their company. If they want to stay know as a brand that stands for high quality they have to make sure they do not stray away from their company values and visions just to make a profit in the short term. The secondary effects that come with changing their structure might ruin what they currently have. If the department store is higher end I would say that they should accept the contract, but stipulate they want to have a preferred display area. This way they can keep their image. If the department store is not up to the current Lancer Gallery image’s

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