Out Of Sight Speaker Company Case Study Week Five

Outofsight Speaker Company Case Study Week Fiveyour Company Is Th

Outofsight Speaker Company (Case Study -- Week FIVE) 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 website, 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 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 gather 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.

Paper For Above instruction

In approaching the initial meeting with Washburn Electronics' senior management, the primary strategic objective is to establish a foundation of mutual understanding and trust. This meeting should be viewed as an opportunity to present Outofsight Speaker Company's vision, core values, and commitment to high-quality audio products, while also eliciting key information about Washburn's operations, market positioning, and strategic goals. The overarching goal is to determine whether the potential partnership aligns with Outofsight’s distribution strategy and brand standards.

Concrete preparations are essential for a successful initial engagement. Prior to the meeting, Outofsight should communicate clearly with Washburn management about its brand identity, product positioning, and distribution expectations. This pre-meeting communication helps set the tone, clarify mutual interests, and reduce misunderstandings. It also signals professionalism and seriousness, signaling to Washburn that this is a strategic evaluation rather than a routine transaction. It is prudent to share a summary of Outofsight's distribution philosophy, recent growth trajectory, and target markets, emphasizing the company's commitment to quality and selectivity in distribution channels.

During the meeting, the strategic approach should focus on active listening and inquiry, aiming to understand Washburn's operations, market reach, customer base, sales channels, and competitive positioning. The goal is to assess whether Washburn's business model, values, and growth ambitions are compatible with Outofsight’s brand standards and long-term objectives. Key strategic questions to ask include inquiries about Washburn’s current distribution network, management philosophy, marketing strategies, and their approach to representing premium brands.

It’s crucial to explore Washburn’s experience with high-end audio or electronics brands, examining their track record in representing premium products convincingly, maintaining brand integrity, and providing after-sales support. Understanding Washburn’s relationships with retail outlets, their sales strategies, and their approach to customer service and technical support can provide insights into their ability to uphold Outofsight’s reputation. Additionally, investigating their financial stability, growth plans, and willingness to invest in training and brand promotion are vital for risk assessment.

Furthermore, it is strategic to gauge Washburn’s understanding of the Kentucky market and their plans for increasing product visibility and market share. Their familiarity with local retail channels, marketing expertise, and willingness to adhere to Outofsight’s pricing and sales policies should also be scrutinized. Ultimately, this meeting should serve to assess compatibility, build rapport, and align expectations, setting the stage for a thorough evaluation of Washburn as a potential partner.

In conclusion, the initial meeting’s strategic goal is to create a dialogue that opens pathways for collaboration while gathering critical information to inform a rigorous internal evaluation. Outofsight must balance open-mindedness with a disciplined focus on key strategic fit criteria such as brand alignment, market expertise, operational capacity, and shared vision for growth. This approach maximizes the likelihood of selecting a distributor that not only expands market presence in Kentucky but also safeguards the company's brand reputation and long-term growth objectives.

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