Case Study : Edward Marshall Boehm

1.0 CASE SUMMARY

Edward Marshall Boehm, Inc was founded in 1950. It is located at Trenton, New Jersey. Moreover, it is a small, high-quality porcelain art objects company that has been very successful, especially at producing images of vanishing species of birds. These high-quality porcelain products are complex sculptures with selling price range from $100 to over $200 which are sought by some sophisticated collectors.

Boehm is the artist as well as the master of the hard paste porcelain products in the manufacturing process. Boehm’s wife on the other hand is responsible on matters regarding the marketing and the financial aspects of the business.

There is an increase of customers’ demand on the porcelain products which place the company in a situation where the company’s past policies were not suitable to be implemented further. Boehm pictured the company to be in a state which will be in the long run.

However, their stated goals for the company were to make the world aware of Boehm’s artistic talent, to help world wildlife causes by creating appreciation and protection for threatened species, and to build a continuing business that could make them comfortably wealthy, perhaps millionaires.

2.0 SWOT Analysis

3.0 Problem statement

By analysis the whole story in the case study, some of the problems had been listed out:

1. The traditional production in porcelain manufacture was too slow and difficult which unable to meet customer demands and might be replaced by new substitute products.
2. Only a small amount of customers which makes Boehm difficult to sustain and growing success in its porcelain sculptures in the long run.
3. Only one distributor, Minton China, assist Boehm to distribute the product over 175 retail outlet which will make Edward unable to initiative in product sales.
4. Some of the porcelain might be sold out for years in advance, but it was difficult to anticipate which pieces might achieve this distinction.  Many of the company’s past policies no longer seemed appropriate.

After analyze all those problems, the main problem in Edward Marshall Boehm, Inc is the difficulty in maintaining the stability and the growing success of its porcelain sculptures in the long run. 

4.0 ALTERNATIVE STRATEGIES

1. Expand retail outlets globally while maintaining on existing product lines.

Nowadays, the business mode had change into globalization. People are willing to demand different products in different places. Although Boehm has 175 retail outlets in the U.S. Boehm’s line, still in order to expand business model, Boehm should go for globalization. By doing so, it is profitable for Boehm in its business and will became famous once in global.

        Although it is suggested for Boehm to expand its retail outlets globally, Boehm still can maintain its own existing product line in order to keep current customers and market in U.S.

1. Product portfolio expansion by including new themes

From the case study, it can be observed that Edward’s porcelain particularly more on delicate forms of animals, birds, and flowers. As a result, butter to butter is no relish anymore. Customers might feel very bored with the products and have no intention to buy it. As a result, Boehm might be lost certain customers market if the porcelain designation still the same without any creativity.

        Thus, it is suggested to Edward to create some new themes on the current product portfolio. For example, by adding up some bridal accessories or other new themes for the purpose diversify in other fields.

1. To consider merger or acquisition of a company in porcelain sculpture industry.

As mention in the case study, there is only single exclusive distributor, Minton China, helps Boehm in order to distribute its products to some 175 retail outlets in the U.S. It is a threat for Boehm to stick only on one distributor. It is because any unreasonable situation happened to Minton China will directly affect Boehm business.

Thus, it is suggest to Boehm to consider merger or acquisition of a company in porcelain sculpture industry. By doing so, it will be much safer for Boehm in porcelain production and reduce certain expenses in marketing.

5.0 EVALUATION OF ALTERNATIVE STRATEGIES

1. Expand retail outlets globally while maintaining on existing product lines.

Positive outcomes:

1) Broader customer base. In the privies marketing, the customer base is a simple one and the global market can brings much more customers so that they can broader customer base.

2) It will be able to extract higher margins. Based on the broader customer and extract higher margins, the directly result is to access to a larger talent marketing.