Lancer Gallery Case Study

CASE ANALYSIS: LANCER GALERRY

This report is based on the information provided by the case and is divided into three sections. The first section identifies the strategic issues and problem. The second section offers the assessment of the industry, market and buyer behavior, the organization and the alternative course of action. The third section provides a set of recommendations and suggestions.

Problem Statement

Lancer Gallery is a limited liability company that sells a wide variety of authentic artifacts such as African and South American Artifacts. The company was well known as a reputable dealer in selling authentic southwestern jewelry and pottery and also as main sources for these kinds of artifacts. Later on, Lancer realized that the company faces with the shortage of supply of authentic artifacts. This problem arises because it’s quite hard for Lancer to find new authentic artifacts in the market because of the political conflict in Africa. In addition, the competition for authentic artifacts has been increasing rapidly and the company had to cope with government restriction in exporting certain artifacts of their country. The existences of fake artifacts in the market also affect the growth of Lancer Gallery since most customers will run to buy the inauthentic artifacts since the price is much cheaper than authentic artifacts.

Analysis and Evaluation of Situation

These problems resulted in the declining of gross profit of Lancer Gallery. But then, Lancer Gallery had the opportunity to recover back the company’s position in the market. One of the biggest merchandise department stores agree to sell Lancer products but Lancer had to increase the number of replicas in their product line. In this situation, Lancer identified two alternative courses of action which are accepting the offer or rejecting the offer. Lancer also recognized three uncertainties which are government regulation, price of artifacts set by the competitors, and the existence...