Sorzal Distributros: SWOT analysis

Sorzal Distributors is a firm of importing and distributing South American and African artifacts. This firm is a major source of authentic jewelry and pottery from southwestern Indian. SWOT analysis is use to analysis this case

Strengths

Exclusive supplier of artifacts Sorzal obtains the strong market position as it is an exclusive importer and distributor of the South American and African artifacts. More specifically, it also is a major source of authentic jewelry and pottery from southwestern Indian. This business conditions characterize Sorzal take the competitive advantage of this condition as it provide the unique artifacts to customer which different from the competitors.

Verification of authentic artifacts Sorzal possess good verification of authenticity and it is one of reputable dealer in terms of authentic jewelry, pottery and artifact. It is difficult for the competitors to imitate as the authentic artifacts are the valuable and unique items. Although Sorzal has expanded the product line to include the replicas of authentic artifacts, Sorzal also has the strength as there were qualified craftspeople producing these replicas. It ensures their products with a good quality which can satisfy customer needs. This competency enables Sorzal to penetrate the market and gain the competitive advantage in this industry.

Weaknesses

• Supply problem
• Authentic artifact supply problem can be considered as the major weakness of Sorzal Distributors.
• The competition on having sufficient supply of authentic products from South American and African is getting more intense due to the increase of competitors and political situation in Africa.

Opportunities

Market growth of replicas In terms of the opportunity matrix, as replicas originally account for only a small portion of total Sorzal sales, the company just agreed to enter this business only at the prodding of the firm’s clients, who desired an expanded line. Moreover, there are several mass-merchandise department store chains that have a high demand on replica supply. Sorzal has the competence and opportunity to expand its market share by increasing high quality replica production so that the success probability is also very high for Sorzal to expand the development of replicas. As a result, Sorzal should utilize the resource to support the increase on replica production.

Threats

• Increased competition
• Increased in competition threaten
• Sorzal as more competitors enter to this type of business.

The competitors have increased from 5 to 11. It is not only the competition at the distribution level has increased, but also the competition at retail level has increased. a high level for the occurrence for competition is expected. It results in the decrease of the bargaining power of Sorzal. the amateurs and fly-by-night competitors also threat the business of Sorzal. The amateurs sell the junk with high price. However, the end customer does not have the knowledgeable about the difference between artifacts and junks.