Outofsight Speaker Company Case Study -
Your company is the Outofsight Speaker Company, a manufacturer of a high quality line of audio speaker systems. Your company has been in existence for four years; sales have gradually been increasing -- 8% annually. Your audio speakers range in price from $400 to $3,200 per pair.
Fast forward... as a recent graduate of DeVry University, your VP of Channel Relations recognizes the excellent learning that you have gained. She has asked you to qualify a potential new distributor for your line of audio speakers.
That potential new distributor is Washburn Electronics, located in Paducah, Kentucky. Outofsight Speaker Company had received a letter of inquiry from Washburn, in which they expressed interest in becoming a qualified Outofsight wholesale distributor in their state. At this time, you do not have a wholesale distributor physically located in this Kentucky geography and your three primary competitors do. Washburn also represents two of those three competitors and does not represent the other one.
Outofsight's interests have been served in Kentucky by two authorized Outofsight distributors in the bordering states of Indiana and Tennessee, both of which have done a decent job representing Outofsight products in Kentucky.
You don't know too much about Washburn Electronics other than what you found on their web site, information of which is fairly limited. Yet, because you have no wholesale dealer distributors in Kentucky, the visibility of your product line is lower than you would like. Washburn Electronics is a wholesale distributor and sells a variety of electronic goods to retail stores, most of which are independent stores. Those stores compete with Tweeter and other stores that sell high quality speakers and audio systems.
As this is a case study that is intended to involve the entire class, no sitting on the curbside to watch the parade go by! I want to see your answers to the questions posed. Let's minimize the "I agree with you" comments and, instead, post thoughtful postings that demonstrate strategic (not tactical) thinking. :) Thanks!
Please go to DOC Sharing and download the Outofsight Speaker Company Case Study. You are asked to investigate a potential wholesale distributor, Washburn Electronics, that has approached your company, i.e, Outofsight Speaker Company, relative to representing your line of quality audio speakers (used with stereo systems).
Your task is to gain information that will help you to make a recommendation to your Vice President of Channel Relations that will ultimately help Outofsight Speaker Company decide whether or not to make Washburn Electronics one of their authorized wholesale distributors.
1. Assume that you are meeting with Washburn Electronics senior management at their office in Paducah, Kentucky. Based on the scenario provided you, a) how would you approach this meeting with Washburn senior management, and b) what strategic questions would you THEN ask the senior management team, the answers to which would help you decide whether or not to bring this company on as an authorized Outofsight distributor will?
Focus FIRST on your strategy for this initial meeting. What needs to be accomplished? What needs to be communicated to Washburn management before we start hitting them with our dozens of questions?