Summary
Tariki Jewelers, may be making a big mistake by the take over of Samuels Jewelers. Samuels has always been a seller of low quality jewelry and is best known as the company that was constantly trying to reinvent itself by purchasing small companies after coming out of bankruptcy, and then changing the name of the company again to a new name. Most jewelry and watch companies spend years and years to develop a name that become a symbol of jewelry in their communities. When a company goes throiugh several bankruptcies and name changes in a 10 to 15 year period, there is something inherently wrong with the management of the company. They also moved their headquarters from Calif to Texas as well. They have very stiff competition in the malls where they are usually located and only a shift in upper management and quality of goods will be able to help them survive. Another name change, unless it is to an already existing chain would be deadly Jules Rabalais
Analysis
If Tarika Jewelers, uses their manufacturing power and buying power to supply Samuels Jewelers with better quality goods, without the standard wholesale markup, Upgrade their selling staffs, then they woould be in a position to overtake the competition in the malls where Samuels is located and become the dominant force in the lower priced jewelry stores. Customers today are so much better educated about diamonds and gemstones that a company with untrained sales staff lose sales to other companies with better trained sales people.
Jules Rabalais
