Head Ski Case
HEAD Ski case: competitive advantage.
1. The best indicators to assess whether Head Ski had the competitive advantage in the ski industry would be to look at profit ratios and compare them to competitors, which will allow us to assess whether Head Ski has above average profits. The best ratios to look at are: return on assets, return on sales as compared to other ski companies that sell high-priced skies, and return on equity, combined with numbers that show how much Head Ski is financed by debt. Looking at net margin as compared to competitors would also be useful. If they have the highest net margin as compared to competitors, than they have the most competitive advantage.
2. Head Ski successfully matched customers demand for high quality metal ski for which consumers were willing to pay premium (as reflected by industry trends), with Head Ski capacity to create differentiation by producing ski with superior features and quality. The skies were sold primarily by experienced specialty retailer in the ski specialty shops, which reflected growing customer preference to buy skies in ski specialty shops.
Head ski used differentiation strategy by using strategy focused on superior product quality, and focusing on exceptional service, and prestigious high-quality image.
Head Ski created a new metal ski almost 5 years before the introduction of next competitive product, by deploying its superior R&D and creating skies that were radically different in design than anything before. Head skies had unique product features (durable and long lasting, reliable: did not break, and unique performance (turning, tracking, traversing), which were superior to other products and for which customers were willing to pay more, costly to imitate
(Head ski introduced several considerable upgrades to the product line over the years and did not hesitate to recall defective product), and organized to be exploited (VRIO). Despite the difficulty of organizing complex
1. The best indicators to assess whether Head Ski had the competitive advantage in the ski industry would be to look at profit ratios and compare them to competitors, which will allow us to assess whether Head Ski has above average profits. The best ratios to look at are: return on assets, return on sales as compared to other ski companies that sell high-priced skies, and return on equity, combined with numbers that show how much Head Ski is financed by debt. Looking at net margin as compared to competitors would also be useful. If they have the highest net margin as compared to competitors, than they have the most competitive advantage.
2. Head Ski successfully matched customers demand for high quality metal ski for which consumers were willing to pay premium (as reflected by industry trends), with Head Ski capacity to create differentiation by producing ski with superior features and quality. The skies were sold primarily by experienced specialty retailer in the ski specialty shops, which reflected growing customer preference to buy skies in ski specialty shops.
Head ski used differentiation strategy by using strategy focused on superior product quality, and focusing on exceptional service, and prestigious high-quality image.
Head Ski created a new metal ski almost 5 years before the introduction of next competitive product, by deploying its superior R&D and creating skies that were radically different in design than anything before. Head skies had unique product features (durable and long lasting, reliable: did not break, and unique performance (turning, tracking, traversing), which were superior to other products and for which customers were willing to pay more, costly to imitate
(Head ski introduced several considerable upgrades to the product line over the years and did not hesitate to recall defective product), and organized to be exploited (VRIO). Despite the difficulty of organizing complex