...Introduction 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. Problem 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. 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...
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...Case Scott Patterson is a salesperson for Perfect Solutions, a chemical manufacturing firm. Larry Ingram, CEO of a company which is one of Scott’s best distributors. They have had a relationship and done business for 10 years and is Scott’s top seller for Perfect Solution products. However, there is a problem and Ingram is upset. Scott signed a competitor to Ingram, Barber Distributing. Barber Distributing is selling the same product as Ingram but for 10 percent cheaper. This forced Ingram to lower his prices to win a bid but did not win. Scott promises Ingram that he sells to Barber at the same price. 1. Ingram is furious at Patterson because he is selling to his competitor, Barber Distributing, and Ingram wants to get the better end of a deal if he can come to an agreement with Patterson. 2. Patterson is in a dilemma. It would be nice to sell to both companies, but because they are competitors, only one will. If I was Patterson, I would continue selling to Ingram, not Barber Distributing, because they have been doing business for 10 years whereas Barber Distributing is a new customer. If he decides to sell to Barber Distributing then Patterson will lose Ingram’s business. 3. If I was Ingram I would tell Patterson that he can either sell to me, who is a reliable customer and has been for 10 years, or continue selling to Barber Distributing (but who knows how long that will last since they are a new customer) and essentially lose my business. 4. Patterson told Ingram...
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...MKT – 420 / / / / Case Study 2 / / 09-30-2014 Lancer Gallery Case Lancer Gallery started in the 1900s. Their headquarters are based in 4 major US cities but they consider Phoenix, Arizona home. They are a large company that have a well-respected reputation for sourcing and selling African and South American artefacts and replicas, along with Native American pottery and jewellery. Problem Definition Lancers current problem as a company is deciding whether they want to reposition themselves. Being a part of such a specialised and particular market makes repositioning a higher risk for them. A department store has approached Lancer with an offer that would increase annual revenues by $4m but would require the organisation to mass produce replicas. Being that Lancer are known for offering top quality products they have to decide whether or not they want to make the shift and become a company that also mass produces replicas, much like their competitors. In turn, Lancer would run the risk of losing their image as being exclusive. They are known for their limited distribution and this is part of what set them apart from competing companies in the market. Statement of Alternatives A. Accept the contract from the mass department store B. Decline the contract from the mass department store Analysis of Alternatives A. Accept the contract from the mass department store; Pros – The first and most obvious advantage that pertains to accepting the contract is that...
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...Lancer Gallery Case 1. How might one describe describe/illustrate the product-market matrix for Lancer’s products? Lancer’s products can be primarily described as high quality exclusive art and decorative items. The communication to buyers is directed by the verification of authenticity of offerings and is spread through reputation from experienced buyers. Further, less authentic and more decorative items have allowed Lancer to spread its product line and increase sales volume by offering high quality replica items that are very attractive to the novice buyer. The method of distribution keeps the company in line with its exclusive appeal by only being offered through specialty dealers, firm-sponsored showings, and a few exclusive department stores. In addition, the firm in many instances is the only supplier of like products to its clients. Continuing, the firm markets to an affluent market base spreading the idea of exclusivity of its products and in is reflected in its price strategy. As Lancer’s products have gained popularity, its sales have an excellent growth rate of 20%. 2. How would one define Lancer’s business? Lancer can be defined as an art and artifact dealer. 3. How would accepting the mass merchandiser’s offer affect Lancer’s business definition? Accepting the mass merchandiser’s offer may change Lancer’s business definition to manufacturer of decorative items and may deteriorate its image as exclusive and authentic. Producing mass...
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...SWOT Analysis Lancer Gallery Faradillah Fazleen Bt Abdul Rashid 2013848804 Nur Amalina Binti Amran 2013682444 SWOT Analysis Strength Lancer developed a national reputation as one of the most respected sources of these types of artifacts Lancer now has long term contracts with native craftpeople in Central America, South Afrca , Africa and the southwestern US who produce these items. The chain was currently selling a competitor’s items but wished to add more exclusive product line. SWOT Analysis Weakness Not only must we search harder for new products, but the competition for authentic artifacts has increased tenfold. In recent years, several massmerchandise department store chains have begun to sell merchandise similar to that offered by Lancer. SWOT Analysis Opportunity The replicas have found most favor among gift buyers and individuals looking for decorative items. I personally think consumer tastes are changing from the modern and abstract to the more concrete, like our products. The problem of supply has forced Lancer to add three new buyers in the last two years. The contract presents us with an opportunity to broaden our frm’s position. SWOT Analysis Threat These South American artifacts aren’t always get easy to get and the political situation in Africa is limiting our supply. On top this, we must now contend with governments not allowing exportation of certain artifacts because of their “national significance”. Throughout Africa...
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...1.0 IDENTIFY PROBLEM The problem that the Lancer Gallery facing is, whether they want to remain as a seller of authentic artifacts or accept the offer from the mass merchandise department store chain in wish they want to market the lancer gallery artifact. 2.0 ENUMERATE PROBLEM 2.1) CONTROLLABLE 2.1.1) Product The lancer gallery is among a few suppliers that exist in the market that supply the only authentic product. The controllable factor that they are facing is, in the term of product itself where they are facing the problem to get the authentic artifacts. The difficulty to get the authentic products has force them to do several steps in order to overcome it. Firstly, the Lancer gallery, forced to add three new buyers in the last 2 years. Secondly, they wish to market the replica artifacts. They only produce higher quality replica made by the crafts people in which the truly knowledgeable buyer- a collector, would know that they were replica. 2.1.2) Place The Lancer gallery facing the controllable factor in term of the market or places to sell their authentic artifacts. At the early age of their business, Lancer gallery only pushes their products through their own showings. As acceptance grew, Lancer gallery expanded the distribution of artifacts to specialty dealers (including selected interior designers and decorators), firm-sponsored showings, and a few exclusive department...
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... 3. Should Lancer Galler reposition themselves as a company? . If they do reposition, how will you differentiate your offerings from competitors? 4. What are the product categories in which lancer Gallery competes- what are the distribution channels lancer gallery currently uses to market these products 5. What research should be conducted by Lancer to determine the feasibility of accepting/rejecting the contract? Based on these findings, should he accept/reject the contract? 6. Should lance gallery risk shifting the business to be focused on replicas even though they are only a small percent of sales? 7. Will accepting this contract affect the companys brand image? 8. What are Lance Gallerys core competencies? 9. If we accept the contract and shift to mainly replicas, how will we differientiate from competitors? 10. 11. What is the expected turnover of this contract? 12. Who are the main competittirs and product brands that are in the market? 13. Given the challenges in the industry, should Lancer Gallery …. Its business …. 14. What are the pros of accepting the depatement store contract 15. What are the cons of accepting a department store contract 16. Should we deny the contract and change the business modal? 17. Will the replications upset current dealers and customers to the point of losing them? 18. what is the level of retailer support? 19. What is the status of the authentic artifact category in department stores and how would Lancer fit into that...
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...CASE LANCER GALLERY Lancer gallery adalah suatu perusahaan yang menjual berbagai macam artifak authentic dari Amerika selatan dan Africa. Jika dilihat kasus diatas bahwa, ada beberapa point yang ingin kami sampaikan yaitu : • Lancer gallery cukup baik menjalankan strategi dengan menjual artifak replica dengan kualitas detil yang hampir sama dengan artifak asli dimana pertimbangan ini dilakukan untuk mengambil cakupan customer (market driven; berorientasi pasar) yang lebih luas karena permintaan customer yang tinggi terhadap artifak replica. • Produk dijual secara eksklusif di toko dan department store yang menjual barang-barang artifak secara eksklusif. • Produk yang dijual mempunyai keunikan (distinctive) Permasalahan yang dihadapi : • Artifak tidak mudah didapat karena terkait dengan kondisi politik di Africa yang tidak stabil yang membatasi dalam memasok barang. • Kompetitor semakin bertambah banyak karena melihat dari Lancer Gallery yang sukses menjual artifak asli dan replika sehingga dengan mudahnya para pesaing mengikuti menjual barang-barang serupa. • Persaingan ditingkat retail juga terjadi dimana para eksklusif department store dan para penjual artifak lainnya melakukan pembelian langsung ke suku etnis Africa dan Amerika Selatan, hal ini dilakukan untuk mendapatkan margin yang lebih dan menekan harga jual yang lebih murah kepada customer. • Para penjual replika artifak Afrika dan Amerika Selatan semakin banyak, produk yang dijual pun...
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...Lancer Gallery’s Background Lancer Gallery headquartered is located in Phoenix, Arizona that sources and sells South American and African artifacts from Southwestern India’s (especially Hopi and Navajo) authentic jewelry and pottery. Lancer Gallery began in the early 1990s as a trading post operation near Tucson, Arizona. Lancer gradually expanded its product line to include pre-Columbian artifacts from Peru and Venezuela. Lancer built a national reputation as one of the most respected sources of South American and African artifacts. In 2001, Lancer expanded its product line to replicas of authentic artifacts but only a small portion of total Lancer sales. The company has gross sales of $35 million and has seen a 20 percent increase every year for the past decade. According to Rangard, the artifacts became rare because South American artifacts aren’t always easy to get and the government also restricts certain artifacts because of their national significance. In early January 2010, a mass-merchandise department store offered a contract to carry a full line of Lancer’s products. The offer has total estimated revenue of $4 million annually, with an initial purchase of no less than $750,000 at 10% below the company’s existing prices. And that contract will increase revenue growth because revenue growth has slowed due to the recession. But the company would have to triple its replica production to meet demands for this contract. Problems How to improve Lancer’s business without...
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...Jialei Wang Strategy Dr. Alan Smith March 9, 2016 Chapter 6 Homework 1) Describe SWOT analysis as a way to guide internal analysis. How does this approach reflect the basic strategic management process? It is a widely used technique where managers create a quick overview of a company’s strategic situation. The basic premise behind SWOT analysis is that an effective strategy derives from a sound “fit” between a firm’s internal strengths and weaknesses and its external situation. The idea is to leverage the company’s strengths in light of the opportunities and minimize its weaknesses and threats. SWOT analysis is an integral part of the strategic management process because strategy is derived after a sound analysis of the firm’s internal and external environment is completed 2) What are potential weaknesses of SWOT analysis? There are four main limitation of SWOT analysis. First, a SWOT analysis can overemphasize internal strengths and downplay external threats. Strategists have to be vigilant in giving due consideration to the external environment’s impact on the firm’s strengths. Second, a SWOT analysis can be static and can risk ignoring changing circumstances. Therefore, strategic managers must be aware of change when doing SWOT analysis or other planning techniques. Third, a SWOT analysis can overemphasize a single strength or element of strategy. Lastly, strength is not necessarily a source of competitive advantages. 3) Describe the difference between primary...
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...strength is the credibility and trust with current buyers and customers. A contract that requires an increase in replicas and selling at a mass merchandiser deflates this exclusivity. In turn, this results in loss of serious clients who look for a personal connection when buying artifacts. The contract may result in a shift from high price collectable artifacts to cheaper replicas not only hurting brand image but sales as well. Additionally, there is the risk that current buyers may eliminate their market relationship. With other available companies in this field, a current buyer may be more likely to find a different opening where he can use his knowledge towards artifacts. Moreover, the exclusive stores that once sold Artifacts from Lancer may cut ties in order to remain exclusive and maintain their own reputation. The contract may result in finding new suppliers and stores. Lastly, the mere availability of replicas can create problems of its own. The native craftspeople, who take pride in their work, may be hesitant in creating more replicas to be sold at a mass merchandiser. The expertise of the craftspeople cannot be imitated or found easily. Also, quality may become an issue as once seemingly authentic replicas can appear more fake- jeopardizing the entire selection of replicas. A promise cannot be made in regards to meeting demand because it...
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...Proton (automobile) From Wikipedia, the free encyclopedia Jump to: navigation, search Proton Holdings Berhad The Proton Company logo Type Public (Bursa Malaysia: Proton) Industry Automotive Founded May 7, 1983 Headquarters Shah Alam, Selangor Malaysia Key people Mohd Khamil Bin Jamil (Executive Chairman) Products Car, Automotive Parts Employees 12,000 Subsidiaries Lotus Cars Website www.proton.com Proton Holdings Berhad (stylized PROTON) is a Malaysian automobile manufacturer. It is headquartered in Shah Alam, Selangor and operates an additional manufacturing plant in Tanjung Malim, Perak. The company was established in 1983 as the sole national car company until the advent of Perodua in 1993. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Berhad. (English: National Automobile Company Private Limited). Proton was largely a manufacturer of badge engineered vehicles from Mitsubishi Motors between 1985 and the early 2000s. The company has since produced several indigenously designed models and operates in at least 26 countries today, of which the majority are in Asia. Proton was formerly owned by Khazanah Nasional, the investment holding arm of the government of Malaysia. In January 2012, it was taken over by DRB-HICOM, a Malaysian conglomerate in a transaction amounting RM1.2 billion. Proton, predominantly reliant on its domestic market is currently undergoing structural and internal changes, as evident in the appointment of...
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...1. How would you define Lancer’s business? Lancer Gallery is a company headquartered in Phoenix, Arizona that sources and sells South American and African artifacts. Lancer Gallery began in the early 1900s as a trading post operation near Tuscan, Arizona. The company became known for selling original southwestern jewelry and pottery. Lancer eventually expanded its product line to artifacts from Peru and Venezuela, along with tribal and burial artifacts from Africa. Lancer established a national status as one of the most valued sources for these types of artifacts. Later on, a shortage of artifacts occurred because artifacts are hind to find, political conflict in Africa, government exporting restrictions, and other competition limited Lancers suppl. Therefore, Lancer continued to expand its product line to replicas of authentic artifacts. 2. Do a SWOT analysis; what does this tell you? A SWOT analysis of the Lancer Gallery strengths, weaknesses, opportunities, and threats would help make a strategic decision on whether or not to forgo the contract. Lancer Gallery’s strengths are that they have been in business for a long period of time, the company has established a strong national reputation as a dealer of authentic products, they have long-term contracts with native craftspeople, and they sell high quality replicas for gift buyers. The company’s weaknesses are their decreasing bargaining power due to competition, difficulty getting authentic artifacts due to scarcity...
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...established in 1983 as the sole national car company until the advent of Perodua in 1993. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Berhad. (National Automobile Company Private Limited). approved by the Cabinet in 1982, leading to the official founding of Proton on 7 May 1983. The company was initially wholly owned by the government of Malaysia through Khazanah Nasional and was headed by its founder, Dr. Mahathir. Proton approached Mitsubishi Motors between 1983 and 1984 and brokered a joint venture between both companies for the production of the first Malaysian car. The result of the collaboration was the Proton Saga, which launched on 9 July 1985.[3] It was based on the second generation 1983 Mitsubishi Lancer Fiore 4-door saloon and powered by a 1.3-litre Mitsubishi Orion 4G13 engine. The first Proton Saga to roll off the production line in Shah Alam is preserved in the Muzium Negara as a symbol of the beginning of the Malaysian automotive industry. Sales of the new Saga outstripped supply and Proton struggled to meet the growing demand, but by mid-1986 it had captured a 64% majority domestic market share in the Below 1600cc segment.[4] Later in October 1987, a hatchback variant called the Proton Saga Aeroback was launched and featured a more powerful 1.5L Mitsubishi 4G15 engine and a redesigned rear-end. Proton entered the United Kingdom in March 1989 with the Saga saloon and hatchback duo, where the Malaysian company set the record...
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...TABLE OF CONTENT Page 1.0 Introduction 2 2.0 Thomas-Kilmann Model 3 2.1 Competing 4 2.2 Collaborating 4 2.3 Compromising 5 2.4 Avoiding 5 2.5 Accommodating 6 3.0 Example of Thomas-Kilmann Model Modes 3.1 Competing Component 7 3.2 Collaborating Component 7 3.3 Compromising Component 8 3.4 Avoiding Component 8 3.5 Accommodating Component 9 4.0 Conclusion 10 5.0 APA References 11~12 1.0 Introduction The purpose of this report was to critically analysis the Thomas – Kilmann Conflict Modes Model. In this report, student needed to discuss of the principles...
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