Case Study Analysis: Sorzal Distributors' Market Expansion Strategies

This case study examines Sorzal Distributors, an importer of authentic jewelry and pottery, and its challenges in expanding its business, particularly in South America and Africa. The analysis focuses on the company's relationships with its distributors and middlemen, highlighting the importance of a strong distribution network for market expansion. The case study addresses issues such as limited raw material suppliers, increasing competition from new companies, and competitors attracting customers with lower prices. Sorzal Distributors' strategies to retain suppliers and customers, including offering higher prices and timely payments, are discussed. The report also emphasizes the company's efforts to expand its supply chain and distribution network to maintain its market share and adapt its pricing strategy. The conclusion underscores the significance of managing distribution networks and customer relationships for market growth.

Case study

Table of Contents
Introduction .....................................................................................................................................3
Main body ...................................................................................................................................3
Conclusion ......................................................................................................................................4
REFERENCES................................................................................................................................5

Introduction
The entire report is based on Sorzal distributors who is an importer of authentic
jewellery and pottery and sells it to South America and Africa (González and et.al, 2019) .
This report focuses on relationship of Sorzal with its existing distributor and middleman.
Main body
Sorzal distribution has name and fame in global level for its pottery and jewellery and
they want to expand their business in other countries as well. This company is getting high sales
due to its unique product and also they are focused on the customer satisfaction. But the only
problem which is being faced by the company is that they have limited suppliers of their raw-
material and valuable tools and equipments. Earlier Sorzal distribution was the only company
who were engaged in selling these pottery and jewellery but the another big issue has pop – up in
front of the company is that high competition now many new companies are indulge in the work
of selling and manufacturing these potteries and the suppliers are less for this products so the
new companies are paying higher prices to the distributors and middle man so that they supply
raw- material and goods to them instead of Sorzal. Specially Hopi and Navajo suppliers,, other
companies and importers are trying to attract these two.
On the flip side , competitors of Sorzal are trying to attract the customers of Sorzal by
offering them products at less prices as compared to Sorzal so that they can increase their
market share (Kronick, 2020). One of the supplier of Sorzal is contracted by the mass-
merchandise, who wants to sell the similar products of Sorzal so that they can gain the market
share although they want to earn the high profit so that they may attain goodwill.
So the biggest issue which is being faced by the Sorzal is to not let go its suppliers as the
suppliers are limited in nature and the entire sales and work of Sorzal depends on the supplier
only so the company is trying to offer high prices to its distributes and middle man so that they
do not leave the company and sell the necessary goods to them only. Another thing which is
being done by the company is that they have decide to pay the charges and payment of the
suppliers on time so that they do not switch.
As the company operates in South America and wants to expand in Peru and Venezuela
thus the distribution network of this company plays a very important role, in the absence of
network chain company cant sell their goods and products to it is essential for them to set up a
healthy relation with them so that they can easily tap into new market (Wong and et.al, 2019.).

Apart from this, company is trying to expand its sully chain and distribution network so that no
one competitor can try to threat them also Sorzal has changed its pricing strategy, to not let go
its potential customers.
Conclusion
The whole report is based on the importer and how they manage its distribution network
and customers so that they can expand the market share.

REFERENCES
Books and Journals
González and et.al, 2019. Impact of EV fast charging stations on the power distribution
network of a Latin American intermediate city. Renewable and Sustainable Energy
Reviews.107. pp.309-318.
Kronick, D., 2020. Profits and violence in illegal markets: evidence from Venezuela. Journal of
conflict resolution, 64(7-8), pp.1499-1523.
Wong and et.al, 2019. Review on the optimal placement, sizing and control of an energy
storage system in the distribution network. Journal of Energy Storage.21. pp.489-504.