Foxy Original

OVERVIEW

Founded in 1998 by recent university graduates Jen Kluger and Suzie Orol, Foxy Originals, a Toronto-based jewellery company, grew to become a well-known designer and producer of high-end jewellery with a strong presence in the Canadian market. Foxy Originals’ high- quality necklaces, bracelets, and earrings are currently sold in over 250 Canadian boutiques. The company’s fast-growing customer base consists mainly of style- and price-conscious women between the ages of 18 and 30 years old. The company’s ability to satisfy huge demand for low-priced high-end jewellery gave it a competitive advantage in a market that long had overlooked low-income young women. As a result, Foxy Originals had a remarkable 400% growth (Exhibit 1) in its first three years of business, and it continues to grow at a rapid pace. With the growing popularity of its products, Foxy Originals was running the risk of becoming over-saturated in the Canadian market. In an effort to avoid this problem, the company decided to enter the U.S. market by January, 2005. To achieve this goal, Foxy Originals had to make a vital decision regarding its distribution strategy: Would the company attend trade shows or hire sales representatives?

SWOT ANALYSIS

Foxy Originals’ strengths reside in its owners’ experience, stylish products, pricing strategy, and its current market presence. Foxy Originals owners, Kluger and Orol, are the company’s greatest assets. Orol’s parents owned a successful metal manufacturing company that specialized in making medals and jewellery. Orol became familiar with the most effective and efficient jewellery production methods. Kluger had been designing and selling her own jewellery since she was fifteen. Kluger’s experience in jewellery fashion and design helped the company stay ahead of the latest trends in the ever-changing jewellery market. Orol and Kluger’s extensive experience in jewellery design and production gave their company the strength it needed to...