ï»¿Lancer Gallery Case
1. How would you define Lancerâ€™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 ...view middle of the document...
Opportunities they have is a possible contract with a mass-merchandising store chain for projected $4million additional sales over the annual growth, opportunities to sell more replicas, and the opportunity to expand the firmâ€™s position. Lancer Galleryâ€™s threats are their competition of high and low quality artifacts and replicas, competitorsâ€™ lower prices, political uncertainty, and limited new products.
3. How might one describe the product-market matrix for Lancerâ€™s products?
Based on Lancerâ€™s business acquisitions in recent years, one might describe the companyâ€™s product-market matrix as progressive. Lancer has developed a nationally recognized reputation through the execution of new offering development strategies to broaden their existing line of products. Over the past few years, they have been able to expand their product line to include African tribal and burial artifacts, pre-Colombian artifacts from Peru and Venezuela, and replica items of authentic artifacts. To coincide with the product development and growing popularity of the company, Lancer decided to expand from the Arizona headquarters by opening new branch offices in Los Angeles, Miami and Boston. By introducing their company to these geographical areas, Lancerâ€™s market-development strategy helped the company attain even more recognition nationwide. Lancer has benefited tremendously from their product-market mix with the companyâ€™s gross sales increasing at a relatively constant rate of 20 percent each year for the past decade.
4. How would accepting the mass merchandiserâ€™s offer affect Lancerâ€™s business definition?
Accepting the mass merchandiserâ€™s offer would have a major affect on Lancerâ€™s current business definition because they would have to triple their replica production to gratify the contractual obligation. Doing this would taint their reputation of being â€œone of the more reputable dealers in authentic southwestern jewelry and potteryâ€ since the companyâ€™s origin in the early 1990s. It is highly probable that most of their current dealers looking for authentic artifacts will look elsewhere if Lancer decides to accept the offer and mass produce replica artifacts.