Case: Lancer Gallery Essay

I. Market Situation AnalysisLancer galleries are in a very exclusive transaction. Although their number of competitors has increased over the away few years, the number of competitors is relatively few. This is an advantage. Disadvantages are far more. For one, replicas and fakes are bonnie a problem in the market. This poses a threat to Lancer, as more people are nevertheless purchasing artifacts for gifts and decorative items, not care about the historic value, and would rather pay a cheaper price for applicative purposes. Second, obtaining artifacts from over seas has proven harder over the past several years because of policy-making situations and other reasons that limit supply. This makes true artifacts harder to get, therefore more expensive. Lastly, because of the recession and economical issues, buying African and South American artifacts is not as common.II. signalize ProblemLancer Galleries must decide whether it will be a anguish decision, just ethically and f inancially, to take the chew that was offered to them by a clutch merchandise department store. The contract presents the luck to add $4 gazillion in additional sales annually, however they would have to triple the derive of replicas they sell. They are torn by the opportunity to make more money, but the potential to ultimately cheapen the value of their transaction by selling fakes.III. Analysis of Options/Alternative StrategiesLancer Galleries has two options. They can either take the deal proposed by the department store, or they can decline and continue to study 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 play along would buy product at 10% below the compeverys existing prices and its initial purchase would not be any less than $750,000. However, in order to accomplish this, Lancer Galleries would have to triple the centre of replicas they sell in orde r to have enough merchandise to sell. By increasing the replica sales, Lancer would be redefining the business, asthey have always prided themselves on finding the most pristine and legitimate artifacts available. Lancer faces the dilemma of more money, versus sacrificing business values.IV.RecommendationI recommend that Lancer does not accept the contract that was proposed. Right straight off their one advantage is that they dont have many competitors. This is because they only sell legitimate artifacts and people trust that when they buy from them, they are acquiring 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.