Lancer Gallery Case
LANCER GALLERY CASE
Product-Market Matrix
Product | Market | Company History in Market |
Southwestern jewelry and pottery | Market for native jewelry and pottery | Longest and deepest history is in this market |
Columbian artifacts | Columbian market for native artifacts | Established presence in market |
African tribal and burial artifacts | African market for tribal and burial artifacts | Established presence in market |
Replicas of authentic artifacts | Market for replicas of authentic native artifacts | Recent presence in market |
Three Dimension Business Definition
- What might we do? → Possibility of contracting with mass merchandise department store chain to carry complete line of Lancer products, primarily authentic and a tripled volume of replicas.
- What do we do best? → Highly reputable dealer in authentic southwestern jewelry and pottery, Columbian and African artifacts, and replicas of authentic artifacts; highly desired and popular product line has led to consecutive increases in sales in recent years.
- What must we do? → Success requirements include: continuing to meet the need of existing clients, continuing to provide established suppliers with product line, overcoming challenges faced by decrease in supply and aggressive competitive bidding from major competitors, and continuing to increase sales.
Business Definition Effected by Contractual Acceptance, Distinctive Competency and Recommendations
If Lancer accepts the offer, the company would be contractually obligated to sell more authentic artifacts and triple current production of replicas. Due to the shortage in supply of products, Lancer would be forced to reduce existing volume of products to existing clients and suppliers in order to meet the production requirements of the contract. The contract will require Lancer to reduce focus on existing sales from established clients and suppliers to meet the needs of the mass merchandise department store retailer. Lancer’s distinctive competency is the company’s established reputation in the authentic southwestern jewelry, pottery, and artifacts markets and their diverse product line. Lancer has developed a highly valued brand name among clients, distributors, and sellers, an advantage that cannot be matched by other competitors. Customers trust the brand name and authenticity of the artifacts in the product line. Replicas are produced by highly skilled craftsmen and are so closely identical to the originals that only truly knowledgeable buyers can spot the subtle differences. Lancer’s contracted business with these craftsmen and exclusive dealers allows the company to stay unmatched and distinct from competitors. I would recommend Lancer to not accept the offer proposed by the mass merchandise department store chains. Although it could lead to an additional $4 million in sales, this might not offset the decrease in existing sales that would occur if the product line’s quantity or quality is affected. If Lancer does want to pursue the contract, I would recommend the company to counteroffer. Due to the shortage in supply, aggressive competitive bidding, and high demand for replicas, it would be unwise for the company to agree to supply so many authentic artifacts and produce a volume of replicas three times their current production.