Business 1220

Pal must be able to support his family

Personal desire to remain in the industry (either through the gallery or photography)

Political

New regulations (Western Hemisphere Travel Initiative ) makes it difficult to ship/trade art

Economy

industry has been stable over time

Recession has shrunk consumer spending, but interest rates are at an all time low (2.225% prime rate)

Weaker US Dollar means fewer US visitors spending money

Social

Growing tourism and art appreciation in Bay field area

Growing use of the internet for buying artwork

Technological

Internet sales becoming a factor

Implications for Decision?

Low interest rate presents good options for borrowing

Potential for loss of sales and increased competition due to internet is a risk

Shipping costs will likely increase across the industry

MAG Competitive Analysis

Strengths Variety of art pieces

Weaknesses No first mover advantage in Bayfield

Artists

Strengths Most knowledgable about heir network, largest selection of their own work, better pricing than retailers

Weaknesses Varsity is limited to their own work, selling and marketing are not their strengths location is not typically in tourist areas

Other galleries carrying out artists

Strengths: Some have better relationships with artist

Weaknesses: website showcase is not being done for artist, since there is 80km exclusivity are not likely is a tourist location like bayfield

Online Galleries

Strengths Variety of art pieces available

Weaknesses Lacks the shopping experience no story behind the artist or help shopping, fraud etc

Indirect Competition: Walmart,Pier- ONE

Strengths : varsity of low priced decor and