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
On one hand, acknowledging to their request could seriously affect Johnson & Johnson’s current pricing strategy by lowering it tremendously, and on the other, a decline to acquiesce to their requests could mean the loss of thirty percent of their total sales from one day to the next.
b. Lancers merchandise was limited before the contract, but now with mass production through the department store they will be able to fully compete with competitors in the market. The company would no longer have to worry about the scarcity of authentic artifacts because they would be mass producing.
This purpose of this report is to provide an analysis of the business and user requirements for the Bazaar Ceramics website.
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.
We recommend investing in the Web-Based Customer Portal. The expected high financial rewards with net present value of $346K and 41% IRR within five years (see Exhibit 1) are the main motivators. Based on our market research, we believe the high revenue would come from an expanded customer base, increased order frequency/size and reduced costs. Going beyond the financial rewards, the strategic impact of the project is not only to increase our penetration rate and customer service quality in the short run, but also to enhance
Cons – The contract with the department store would increase annual revenue by $4m and from Lancer’s current sales number this is a number that cannot be ignored. The company would continue with decreasing sales and profits if they do not
While bargaining power of buyers is ranked the least important of the five factors for Mondavi’s strategy, its importance should not be understated. One of the Wine is typically sold to wholesalers who then distribute to retail outlets. With the decreasing number of wholesalers and the consolidation of retailers, buyers negotiating power is increasing. It is difficult for companies like Mondavi to make consistent profits and maintain market share if they cannot keep products on retailers’ shelves.
Being acquainted with a mass merchandiser could ruin the company’s image so loyal customers who frequently purchase Fe’nix’s items may start searching for artifacts that are imported through dealers that only sell “authentic” pieces
Foxy Originals hopes to gain successful market entry into the United States within six months. The U.S. market is significantly larger than the Canadian market that Foxy currently operates in and has substantially less brand loyalty and demand for classic jewelry. Foxy’s two potential methods of market entry are: (1) Tour their products at ten U.S trade shows and make direct sales to retailers or (2) Hire four sales representatives in fashion hubs across the U.S. We, Vandelay Industries, recommend Foxy implement the first alternative.
Retail super-giant Wal-Mart has fought its way to becoming the world's largest company. Wal-Mart’s legendary supply chain technology has allowed them to break the three-day barrier that some economists in the eighties felt that it was unbreakable. In other words, Wal-Mart is often able to replenish items on the Wal-Mart shelf in less than three days – not from the central warehouse to the shelf, but from the manufacturer to the shelf. With quick and reliable 2-day turn around, Wal-Mart is able to maintain lower levels of inventory and still meet customer demand. These lower inventory levels result in either a reduced floor plan with lower carrying costs and lower interest expense – or a greater diversity of products on the store shelves.
This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.
In projecting demand, we face many problems along the way because is not easy to please every type of customer in the market world. First of all, gauging new item presentations is turning out to be progressively critical as item life-cycle abbreviates and collection turnover increments. It represents a specific test in claim to fame retail divisions, for example, gadgets, design, books and cultivating, where new item presentations and intensely invigorated occasional combinations represent the
In 2010, PepsiCo Beverage Company (PBC), a working unit of PepsiCo Inc. (PepsiCo), the second biggest sustenance and refreshment organization on the planet, got the inventory network advancement recompense from the Council of Supply Chain Management Professionals (CSCMP). PepsiCo was given this grant for its creative conveyance procedure, the "Direct to Store Delivery show", that decreased framework wide stock, disposed of stockroom space imperatives, upgraded the potential for boundless SKU development, and conveyed distribution center expense reserve funds. In the wake of indicating tremendous development in the 1990s and early2000s, PBC thought that it was hard to deal with its dispersion focuses and distribution centers.
We had launched four products, comparably less than other groups which was five. Our products aimed for a niche luxury market with high technologies and expensive price. Rather than selling many products with different models, we planned to increase market shares of each specific models.
Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material