'Case: Lancer Gallery Essay\r'

'I. Market Situation outline:\r\nLancer galleries are in a very exclusive business. Although their physical body of competitors has increased over the erstwhile(prenominal) few years, the emergence of competitors is relatively few. This is an advantage. Disadvantages are far more. For one, replicas and fakes are graceful a problem in the market. This poses a threat to Lancer, as many people are hardly purchasing artifacts for gifts and decorative items, not caring active the historic value, and would rather pay a cheaper determine for practical purposes. Second, obtaining artifacts from over seas has proven harder over the past several years because of political situations and other reasons that fasten supply. This prepares true artifacts harder to get, therefore more expensive. Lastly, because of the recession and economic issues, buying Afri stooge and South American artifacts is not as common.\r\nII. Key Problem\r\nLancer Galleries must purpose whether it will be a sm art decision, moreover ethically and financially, to bewilder the deal that was offered to them by a mass merchandise department store. The contract presents the probability to add $4 one thousand million in spare sales annually, however they would throw to triple the gist of replicas they sell. They are torn by the hazard to make more money, but the potential to ultimately disgrace the value of their business by selling fakes.\r\nIII. Analysis of Options/Alternative Strategies\r\nLancer Galleries has two options. They can either take the deal proposed by the department store, or they can decline and continue to conduct business as they always have. If they accept the proposal they have the opportunity to increase sales by 4 million annually (depending on consumer acceptance). The company would buy harvest at 10% below the company’s existing prices and its initial purchase would not be any less than $750,000. However, in order to turn over this, Lancer Galleries wo uld have to triple the amount of replicas they sell in order to have enough merchandise to sell. By increasing the replica sales, Lancer would be redefining the business, as they have always prided themselves on finding the most primary and let artifacts available. Lancer faces the dilemma of more money, versus sacrificing business values.\r\nIV.Recommendation\r\nI recommend that Lancer does not accept the contract that was proposed. in effect(p) now their one advantage is that they don’t have many competitors. This is because they only sell legitimate artifacts and people trust that when they buy from them, they are getting a solid product. While upfront it may seem that they would be making more money, I believe that overall they would be cheapening their business by tripling the amount of replicas sold.\r\n'