I. Recommendation:
1. Swisher Mower and Machine Company Case should take the distribution proposal with the Retail Merchandise Chain. The company alone isn’t receiving a large amount of sales and this opportunity is a great one for them to increase sales and receive a larger portion of market share.
II. Rationale:
1. They have the opportunity to dramatically increase their sales and lower their sales expenses (Appendix II.B)
2. Sales in national Retailer chains are rapidly increasing which is huge opportunity for SMC to enter into the market.
3. SMC has the opportunity to pull out from the contract with retailer, so if they don't see any improve when entering into the market they can simply terminate it if necessary.
4. They are entering a new market, and have the potential to quickly grab market share and increase their sales within the national merchandise stores.
5. Swisher has a unique design that cannot be replicated which give them an advantage against their competition
6. Even though SMC would be more exposed to greater liability, they have never have an encounter with claims for nay products sold or used since 1956; so it is likely they at least in the short-term they won’t have to worry too much about liability claims Appendix (I)
Alternative A: Enter with distribution proposal with Retailer Merchandise Chain
1. Advantages
a. Being that current sales are 4200 units, with the arrangement they could increase 8200 units (Appendix II.B)
b. They would reach customers that they do not currently reach
c. By taking the proposal they would have the opportunity to release their T-44 model
d. Current sales and administration expenses rate will decrease because the Chain will cover all advertising related to private-branding product
e. This is a huge chance and a quick solution for them to increase their market share
f. Swisher has a