Case Study: Fe’nix del Sur, LLC

I. Problem Statement

If Fe’nix del Sur, LLC accepts the contract they might make a potential profit of $4 million in additional sales and above the annual growth and be able to broaden the firms current position, but it might not be worth it due to the fact of possible loss of current dealers and customers, and the companies authentic-ness.

II. Industry Analysis

Fe’nix del Sur, LLC competes in the authentic artifact business. They collect authentic artifacts and replicas and sell them to two main groups; artifact collectors and gift buyers. They currently do not have a full line of replicas due to the fact that they are a ‘specialty’ store.

II. Organizational Analysis

Business: Fe’nix del Sur, LLC is a limited liability company that sources and sells South American and African artifacts. They are one of the most respected sources of artifacts for collectors.

New Business: Fe’nix del Sur, LLC has a full line of replicas they sell to gift buyers. They have an extra $4 million due to the addition to the full line of replicas.

Distinctive Competency: Fe’nix uses their authentic artifacts to set them apart from places such as department stores that sell all replicas.

The relationship Fe’nix del Sur, LLC has between the company and retailers that sell their product is very close. Fe’nix del Sur, LLC only distributes through specialty dealers and some exclusive department stores.

If the company accepted the contract these retailers might drop them due to the fact of not having the reputation of authentic. The ‘specialty’ dealers only want to deal with ‘specialty’ companies.

IV. Alternatives Accept Contract Advantages 1. If they accepted the contract there would be a potential $4 million in additional sales over and above annual growth. 2. If they accepted the contract they would be