Submitted by: Submitted by bobo
Views: 976
Words: 325
Pages: 2
Category: Business and Industry
Date Submitted: 03/06/2009 05:27 PM
PROBLEM IDENTIFICATION
The main problems facing Toucon Collections, Inc. are related to the changes in the external business environment:
1. Increased competition lowers Toucon’s gross margin:
a. Toucon’s competition is gaining competitive advantage by using mass-distribution channels, including internet, to present their offerings.
b. Toucon’s customers (dealers, specialty shops etc.) begin buying directly from suppliers, eliminating Toucon as a distributor (“middle man”) in the process.
2. Limited product supply:
a. Difficult to acquire authentic products due to their rarity and “national significance”.
b. Increasing number of competitors decreases the availability of authentic artifacts.
INDUSTRY, COMPETITIVE AND ENVIRONMENTAL ASSESSMENT
Industry:
It is likely to believe that Toucon Collections is a leader in the industry and its competition will try to offer products at a lower price in order to compete successfully. There is small number of firms and Toucon’s traditions are in the authentic artifacts. The competition offers mix of products with special attention to replica products. Careful verification of authenticity of the artifacts is a key element in the industry.
Competition:
It is very likely that Toucon has larger bargaining power than its competitors. In order to be successful Toucon’s competition will need to concentrate on replica products which are relatively cheaper and could be mass-distributed in department stores.
Environment:
The majority of the artifacts are imported form South America and Africa, regions historically constituted of countries with unstable political systems. It is very likely that Toucon could have lobbyists on its side, when it comes to resolving issues where foreign governments are involved.
SUBJECTIVE ANALYSIS:
Strengths: Toucon has well established reputation hard to imitate by the competition. It is very likely that Toucon has the majority of the market in the authentic...