Toucon Collection Case

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Synopsis: Toucon Collections, Inc. is an importer and distributor company with a history about 100 years. Now, its bargaining position has eroded and the gross margin slipped in recent years due to aggressive competitive bidding by others. And this case is about an opportunity for Toucon Collections to broaden their firm’s position through a contract with mass-merchandise store chain. The contract submitted by the chain stated that it would buy at 10% below Toucon’s existing prices, and that its initial purchase would be for no less than $750,000. And they estimated the purchases to be at least $4 million annually. On the other hand, Toucon would have to triple its replica production to satisfy the contractual obligation. Should Toucon Collection accept the contract? There are both opportunities and threatens. SWOT analysis: Toucon Collection’s strength is that consumer can trust their products. To avoid being cheated by amateurs and fly-by-night sellers, consumers desire to find a big company which could ensure them a quality, authentic products. Toucon Collection has supply problems recent years in collecting certain volume of replica products. The reason is both the rapidly increased competition and the strict governments not allowing exportation of certain artifacts because of their “national significance”. SWOT Matrix for Toucon Collection Inc. Case Selected Internal Factors Representative Selected External Factors Representative Strengths Weakness Opportunities Threats Management Experienced and observant sales manager Lack of management depth Competition Toucon has Long history and provide high quality products Amateurs and fly to night competitors Marketing Target is strong Highly limited distribution Consumer trends customers need a company they can trust Lack of products to satisfy consumers’ demand Manufacturing

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