SRKS Guitars lacks a solid and sustainable strategy for establishing their product in the guitar market. This issue is evident in the slow shipping and assembly logistics, which often result in missed order deadlines. Additionally, the high costs associated with guitar development and advertising do not align with the low perceived earnings that the company currently experiences. To address these challenges, SRKS Guitars has the following alternatives: 1) Maintain their current marketing and distribution partnership with Hohner. * Pros (+): i) Hohner is an established distributor of musical instruments, offering valuable contacts and networks to facilitate the brand’s immersion in the market. ii) By relying on Hohner, SRKS Guitars can avoid making their own investments in information and research. iii) This allows SRKS Guitars to focus on improving their products and processes. * Cons (-): iv) There is currently no tangible contribution from Hohner to the results of RKS Guitars.
The text states that there are several factors to consider regarding the opportunity cost of solely relying on Hohner as a partner and not exploring other potential options. Additionally, not involving the company in market research may lead to harmful consequences in the future. The suggestion is made for RKS to end their association with Hohner and seek out a different partner. There are advantages in doing so, including the possibility of a fresh approach to the product that can incorporate the knowledge gained from working with Hohner, as well as the potential for newer and better ideas for the brand.
IX) A new partner has the potential to improve profits in the short term. X) If RKS is unsatisfied with their current results, starting fresh could be a relief for the company. However, it may take time to adapt to a new partner and achieve synergy. XI) RKS needs to minimize the time required for adaptation in order to meet their deadlines. XII) There is the possibility of making wrong decisions and experiencing misunderstandings with a new partner. XIII) Different business perspectives may arise. RKS would have to handle marketing and selling responsibilities on their own. XIV) This would allow for complete immersion in product development. XV) The product will receive the necessary attention. XVI) Product development and advertising will align with the company’s beliefs. XVII) However, the company lacks real experience in these areas. XVIII) Market research would require time and money investment, rather than outsourcing. XIX) Finding a buyer who can license their design would provide funds for brand improvement and development.
XX) Utilize the buyer’s market position to connect with customers. XXI) The backing from a major company contributes to brand recognition and the quality of RKS products. * Cons (-): XXII) The possibility of the project being abandoned or delayed by the Buyer. XXIII) RKS loses its influence in the product manufacturing process in terms of their ideals and beliefs. XXIV) The Buyer has decision-making authority over RKS. My recommendation for RKS Guitars is a combination of options 2 and 3. Finding a new partner can help resolve the obstacles and uncertainties that RKS had regarding the product’s development.
Additionally, incorporating fresh concepts into the business serves as a supplement to the knowledge gained through the partnership with Hohner. This not only adds value to the product, but also enables exploration of new ideas that may have been challenging or impossible to obtain otherwise. To enhance the product’s worth during the search for a new collaborator, RKS should invest in understanding the market and the responsibilities associated with marketing and sales. This will raise awareness about their endeavors and provide insight into what can be expected from their potential partner. Consequently, ideas can be developed based on a comprehensive understanding of the business rather than solely relying on outsourcing trust.
This alternative suggests that RKS Guitars should not work alone but rather understand the significance of a marketing and selling partner in order to achieve better outcomes. It is important to comprehend the various stages of the process, as some of them can be pivotal for success. Specifically, the plan involves: 1) Severing ties with Hohner. 2) Conducting market research to gain insight into Marketing and Selling operations, while seeking potential new partner candidates. 3) Aligning with a partner who shares the company’s values and expectations, and has strong synergy with them.
