Czech glass is a particularly attractive product in the chandelier industry. In northern Bohemia, glassworks have been
Question:
Czech glass is a particularly attractive product in the chandelier industry. In northern Bohemia, glassworks have been in existence since the midfourteenth century and Czech crystal, which is colourless and ideal for engraving and cutting, has been particularly attractive to chandelier makers.
Thomas Klaus, president of Crystal Components, had established his firm as a major supplier of Czech glass components to chandelier makers in the Czech Republic. Now, he was thinking of moving into foreign markets. Preliminary research showed large numbers of chandelier makers in the EU, the US, and China. While they were quite capable of making chandeliers to equal the quality of those made in the Czech Republic, they would need the Czech glass to make these chandeliers world class in quality. As such, Mr Klaus is very interested in establishing relationships with chandelier manufacturers as quickly as possible. A key question in his mind is the proper pricing for these components. He has established costs for spheres and ovals in the crystal formations used in the chandeliers and also has determined the import duties into each of the target markets. These are seen in the table below:
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen