Cost-Benefit Analysis for Foxy Originals Essay Example | Topics and Well Written Essays - 2750 words

Cost-Benefit Analysis for Foxy Originals - Essay Example Foxy Originals is renowned jewelry company which is headquartered in Toronto, Canada. The company was established by Jen Kluger and Suzie Orol in the year 1998 (Foxy Originals, 2013). The company has established its presence in 250 boutiques in Canada. The product portfolio of the company is comprised of high end and stylish necklaces, earrings, bracelets, rings, belts and other jewelry items. A business must have a competitive advantage in order to sustain in the marketplace (Porter, 1980, 1985 and 1991). Hence sustainability of Foxy Original is dependent its competitive advantage of selling stylish but low-cost jewelry to price-sensitive women in the age group of eighteen years to thirty years. Although the company is growing at an acceptable pace there is a risk for the Canadian jewelry market to get saturated due to the entry of new players in the future course of time. Over saturation and presence of many sellers in comparatively small Canadian jewelry market might decrease the profit margin for Foxy Originals in the near future. Hence, the company is thinking about entering USA jewelry market which is 10 times bigger than Canadian jewelry market by the month of January 2005. To enter USA jewelry market, Foxy Original must formulate a profitable distribution strategy which can give them a sustainable competitive advantage. Â  A brief discussion about the about target customers of Foxy Original will help the essay to develop a thematic background for the case.