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February 4, 2006
Sorzal Distributors Case
Introduction
Management of Sorzal Distributors is faced with the difficult decision of signing a purchase contract with a mass-merchandise department store chain at 10 percent below existing Sorzal's existing prices. Sorzal Distributors has established itself as one of the more reputable dealers in authentic southwestern jewelry and pottery. The company is positioned as a distributor of high-quality and authentic South American and African artifacts and replicas at reasonable prices. Its products are distributed exclusively through specialty dealers (including interior designers and decorators), firm-sponsored showings, and a few department stores. Sorzal's gross sales are about $25 million and have been growing at relatively constant rate of 20% per year but its gross margin has slipped in recent years due to aggressive competitions at both the distribution and retail levels resulting in erosion of its bargaining position in the market.......

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Approximate Word Count: 648
Approximate Pages: 3 (250 words per double-spaced page)

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