Lancer Gallery Case
1. How would you define Lancer’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 Lancer Gallery strengths, weaknesses, opportunities, and threats would help make a strategic decision on whether or not to forgo the contract. Lancer Gallery’s strengths are that they have been in business for a long period of time, the company has established a strong national reputation as a dealer of authentic products, they have long-term contracts with native craftspeople, and they sell high quality replicas for gift buyers. The company’s weaknesses are their decreasing bargaining power due to competition, difficulty getting authentic artifacts due to scarcity, dealing with government exporting artifacts and restrictions. 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 firm’s position. Lancer Gallery’s threats are their competition of high and low quality artifacts and replicas, competitors’ lower prices, political uncertainty, and limited new products.