Fe'Nix Del Sur Case Analysis

Fe'nix del Sur case analysis

I. Problem definition

Should Fe'nix del Sur accept the contract from the mass-merchandise department store, thus tripling its replica production and broadening the firms position?

II. Industry analysis

Fe'nix del Sur competes primarily in the authentic artifacts business. However, a small portion of their sales come from high quality replicas of authentic artifacts.

Product-Market Matrix

Authentic Replicas

Collectors

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Non-Collectors

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III. Organizational analysis

Fe'nix del Sur is a limited liability company, known as being one of the most respected importers of ancient artifacts amongst collectors. In 2001 Fe'nix expanded its product line to include a few high quality replicas.

If Fe'nix accepts the contract proposed by the mass-merchandiser they will completely change their position in the market. By tripling their replica production, they will be competing primarily in the replica market . Fe'nix del Sur will then redefine themselves as a producer of replicas for non-collectors.

Fe'nix del Sur's current distinctive competency is their solid reputation. Fe'nix del Sur was operating through a trading post near Tucson, Arizona, in the early 1900's over time the company has built up their reputation as being one of the most reputable artifact dealers. The company has established a long term trusted relationship amongst their current customers who place a value on the quality and exclusivity that they receive. If Fe'nix del Sur accepts the new contract the relationship between their current clients will completely change. Fe'nix del Sur's current clientele will no longer be the company's primary target market and the value the clients once placed on exclusivity will no longer exist due to Fe'nix del Sur's new positioning in the replica market.

IV. Alternative Solutions

A. Accept contract

1. Advantages

a. Fe'nix del Sur could...