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Lancer Gallery

In: Business and Management

Submitted By student19909
Words 435
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Accepting the contract offer from the mass merchandiser is ill-advised for the following reasons: loss of competitive strength, demoralize buyers, and create the challenge of meeting demand of replicas. Artifacts which are sold to collectors at a high price will become less common and perceived as fake while replicas which can be bought by anyone for decorative purposes will increase in number. Accepting the contract will change the current distinctive competency and brand image.

Furthermore, a main competitive 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 relies heavily on the relationship with the buyers and number of replicas produced by the native craftspeople.

In conclusion, the potential rewards do not outweigh the harm. There are three guarantees with this non-negotiable contract that are: replicas need to increase three fold, a 10% discount is taken, and only $750,000 is confirmed. These guarantees offer no benefit and actually increase current work while providing a discount. Currently business is growing 20% a year and the reputation as a premier seller of genuine artifacts is perceived by others. A contract with a mass merchandiser will hinder that credibility and potentially result in loss of customers and ticket price of artifacts, jeopardize current relationship with buyers, and the availability of replicas will be an ongoing problem to fill the need for demand.

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