When you’re working through competitive advantage problems. Does anyone else use comparisons to real life companies to try and equate to the correct answer. I need some new ones. Here are the ones I think of. Cost Leadership- Walmart Cost Focus- Home Depot Differentiation- Gucci? Differentiation Focus- Rolex
Rolex sells 750k watches world wide how can it be focus? This is probably my worst subject by the way.
Disregard then, sheat. Trying to get an example or two to help out. And for rolex they focus on high end watches, specifically dive watches for the elite. Materials don’t cost any more than some others but they charge more. How isn’t that focus. What would you consider that?
That would be differentiation. I’ll try to think of a few.
Yeah I do exactly the same. Cost Leadership- Tesco (lowest cost supermarket) Cost Focus- Focus DIY (Home Improvement store - lucky name) Differentiation- Waitrose (High-end supermarket) Differentiation Focus- Rolex (same)
I’m pretty sure the really annoying snot-man from the Schweser videos said that an example of Differentiation Focus is Rolex.
I don’t see how it can be if they mass produce them and sell them everywhere.
Really? along I’ve thought they’d be a Differentiation focus. Damn. Does the category just have to be more narrow than High End Dive watches? I’ve missed some softball ones on this and it seems like it should be simple enough…
^ allepou hhahahahahah. You have me rolling with your snot man description… That poor guy has the worst allergies…
I get killed every time on this.
Maybe I am just over analyzing because I like horology. Rolex is known for their dive watches, but they make more than that and a crap load of them.
I guess just general Cost Leader: National Cost Leader Cost Focus: Southeast Cost Leader Differentiation: Fresh Market (not sure if they are nation wide) Differentiation Focus: High End Grocery Store serving the Southeast Is this the proper way to think of it?
Anyone else have any great insights? I think (only my ignorant opinion) that the Differentiation Focus doesn’t necessarily have to do with where it serves, or how many but rather the specificity of the product and other competitor products? Bad example but maybe a monoski company. It doesn’t have a cost focus, targets the overall ski industry but specifically targets, those that want 1 big ski verses the standard 2 skis? May or may not charge more money. (where differentiation may be the hand made Race Ski company, with great graphics, that target rich people) Thoughts? If I blow a point on the exam I want it to be a complex currency swap vs. a silly competitive advantage.