Monday, February 18, 2013

Fe'Nix Del Sur

Fenix Del Sur

Fenix Del Sur presently sells South American, Indian, and African artifacts. Fenix Del Sur was originally a trading post near Tucson, Arizona, that grew into an international operation. The federation is now headquartered in Phoenix with branches located in Boston, Miami, and Los Angeles. through with(predicate) the course of studys, Fenix Del Sur established itself as wizard of the most respected sources of artifacts from South America and Africa.

In 2001, the political party began selling high quality ripostes at the request of customers. The replicas be a small portion of the companys gross sales and atomic number 18 popular amongst gift buyers or those looking for decoration. Replicas are produced by native craftspeople in Central and South America, Africa and the American Southwest.

Gross sales are currently $25 billion per year and go for increased at 20% per year for the last 10 years; however gross margins have started to decrease in the past few years. The number of competitors has dual in the last few years and the market has in like manner become flooded with cheap replicas and inauthentic items. Supply of artifacts has decreased forcing Fenix Del Sur to add 3 spare buyers in the last two years and hire armourer to consistently produce replicas.

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Currently, the products are distributed through specialty dealers (interior designers and decorators), sponsored showings, and sole(a) department stores. 

I. Issues

Fenix Del Sur was approached by a mass merchandise department store to provide a full line of items, including a full authentic line. The retailer has offered to pay 10% below existing prices, the initial purchase would be for $750,000, and sales are expected to reach $4 million annually.

Should Fenix Del Sur accept the contract, the replica production would have to triple in parade to take on contractual obligations. The decision comes down to: does the company want to be an authentic antiquities supplier or refocus and become replica supplier?

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