Fe’nix de Sur is one of the respected companies that sell pre Colombian artifacts. It started selling replicas in 2001.these replica are not authentic that only a fewer true collectors would recognize that these replicas were not authentic. The total sales of replicas is small ratio to total company’s revenue. The company doesn’t want to add replicas as a new product line. But due to the high demanding from their clients to add more product lines, the company start selling them as a secondary product.
II. Case Problem:
The company’s problem is to whether to work with mass-production Company that will tripling its replica production and eventually adding $4 million to its sales.
III. Feasible Solution:
• Solution#1: to accept to work with mass-production because if they accepted the contract, they will broaden the firm’s position as well as add $4 million to the total sales and growth.
• Solution#2: to reject the contract and keep their strong relationship with the dealers and clients. Also, keep its strong and clean reputation of selling only authentic products.
IV. Selected Solution:
Each firm’s goal is to maximize its wealth. So in my opinion, the company should accept the contract, increase its replica production, add $4 million to total sales, and concern less about the reputation of having only authentic products.
V. Conclusion:
If they fail to accept the contract, the should increase their market by adding more dealers, making more advertising, and attracting more clients in order to replace the loss of $4 million as well as to continue leading in the high compete artifacts market.