Essay Sorzal Distributors

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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'
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Turning down this offer could make Sorzal loose a good market opportunity it needs to counter the fierce competition it is facing and to increase its annual sales.
Analysis and Evaluation
Today, Sorzal Distributors count eleven major players in the artifacts industry that compete directly with them. This number of competitors –in addition to others- is a proof that the artifacts business is an attractive industry with low entry barriers (in terms of regulations and capital). In fact, the market of artifacts witnesses different players in terms of nature of their products, scope of business and channels of distribution. These can be importers/distributors, specialty dealers, department stores, amateurs and dealers who sell their products through internet. These competitors display fierce competitive moves ranging from dealing directly with Sorzal's suppliers to selling fake artifacts at exorbitant prices in different locations of the country. (R. Kerin, R. Peterson (2005). Strategic Marketing Problems cases and comments (10th Ed.) In such industry circumstances, Sorzal's initial market segmentation has been blurred. Initially, the company targeted buyers of authentic pieces of artifacts in the United States namely collectors, then responded to its small customers number of gift and decorative items buyers. After the entrance of all these competitors to the market, Sorzal should reconsider
Sorzal Distributors 4

its market segmentation, its ways to

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