Sorzal is an importer and distributor of artifacts mainly from South America and South Africa, and of jewelry/pottery mainly from South-western India. The company has developed a reputation of being one of the most respected importers of these rare and authentic items. The company’s annual sales are twelve million and have been increasing at a constant rate of twenty percent per year over the last ten years. However, due to high levels of increased competition, profits have been deteriorating. Distribution is limited, as most of it is done by Sorzal itself in the form of firm-sponsored showings, and some specialty shops and exclusive department stores. Sorzal acts as a middle man, importing from suppliers and distributes to dealers. Dealers are starting to change their purchasing strategy and have begun buying directly from suppliers, eliminating Sorzal from the picture. Sorzal has been offered a contract by a mass-merchandise department store that obligates Sorzal to triple replica production, but would obtain an estimated one million in sales. The decision is whether to accept the offer, considering external competitive factors in the market and any potential negative effect on Sorzal’s reputation.
Sorzal’s strengths lie within their products, as the company prides itself in providing its customers with authentic artifacts and replicas that are produced scrupulously in order to ensure that only an expert buyer, such as a collector, would be able to recognize that they are replicas. Sorzal is able to produce such high-quality products through their talented employees, who obviously have a great degree of talent. The company’s products have recently gained greater acceptance in the market, allowing Sorzal to expand their distribution to specialty shops and exclusive department stores. The company’s commitment to quality and its emphasis on providing unique and