Fenix Del Sur

Submitted by: Submitted by

Views: 720

Words: 1034

Pages: 5

Category: Business and Industry

Date Submitted: 01/04/2012 02:10 AM

Report This Essay

Mai Zulaiha Baharuddin

EMBA UiTM 2011

Assoc Prof Dr Faizah Abd Rahim

Step 1: Define the problem

A mass merchant store contacted Fe’nix in 2009 asking to sell a large product line. The store said they would pay 10% below the company’s existing prices and the purchase would be for no less than $750,000. Purchases were expected to be 4million annually however, to satisfy the contractual obligation, the company would have to triple its replica production. Accepting the contract would have a severe impact on how the company defined its business.

The real question to be asked is: Do they want to accept the contract offered or remain as an authentic artifacts supplier i.e. rejects the contract?

Fe’nix objectives:

- To supply authentic artifacts to its buyers and remain exclusive as authentic supplier

- Increase in sales and revenue

Fe’nix Constraints:

- Political situation in Africa and government rule that does not allow export of artifacts due to “national significance” issue has limited product supply

- Increasing number of competitors that sell authentic artifacts and replicas

- Increasing number of buyers who go straight to craftmakers that reduces Fe’nix’s retail sales

Step 2: Enumerate the decision factors

There are two sets of decision factors that must be enumerated in the decision making process which are:

(a) Alternatives course of action – controllable decision factors which include the marketing mix; product, place, price, and promotion strategy:

Place: Fe’nix could increase its branches to improve distribution channel of its products

Price: With the slipped of bargaining power due to increasing competitors, Fe’nix needs to consider changes on its products’ price but at the same time remain exclusive.

Promotion: Improve product market strategy via huge promotion on awareness about originality/authenticity of artifacts

(b) Uncertainties – uncontrollable/external factors

Competitors: Fe’nix can’t control the existence of...