Differentiating Yourself From the Competition

Arc’teryx is a Vancouver based company with a marketing strategy almost as outstanding as its products. The company produces high performance outdoor gear, competing with brands such as The North Face, Columbia, and Mountain Hardware. When building its products, Arc’teryx claims that: “Our sourcing team dedicates extensive research into staying informed and continually searches for the best materials available” (Arcteryx). The company’s process of creating new products is tied to the way in which it competes. Arc’teryx’s main purpose is to “build the finest products possible” (Arcteryx), the company doesn’t focus on outdoing the competition, but in creating innovation, which changes the perception of how outdoor performance products should be built.

                                                             

Next, it is important to note Arc’teryx’s commitment in preserving the environment and being socially responsible. Even the durability of the company’s products is relevant to its environmental concerns, as this reduces the total amount of materials and energy used in manufacture and distribution over the years. As well, when manufacturing its products, Arc’teryx ensures that its down sources (for jacket insulation) are certified non-force fed and non-live pluck. In addition, the company offers a life time warranty and repair on its products, which satisfies customers while simultaneously keeping old jackets out of landfills. Moreover, any product that Arc’teryx can’t repair to meet customer standards is often donated to the less fortunate. All of these aspects work in tandem to offer customers with unique and higher value than its competitors offers.

Sources:

http://leaf.arcteryx.com/About-Us.aspx?EN

http://www.arcteryx.com/environment.aspx?language=EN

RE: Zara’s business model and competitive advantages

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As Diane Isabelle mentioned in her blog, the clothing company Zara has a unique business model, which provides the company with high profits and increasing sales amidst the euro zone crisis. So what’s so unique about Zara?  Of course, Zara segments its market, is heavily consumer oriented, and has excellent marketing all around, but in my opinion, Zara’s model is hard to replicate because the company has carved a sustainable competitive advantage by virtue of its operation excellence. Since, among other things, Zara’s supply chain is so short and efficient, Zara is able to respond to any changes in trends much quicker than its competitors. As well, Zara is able to produce small batches of clothes without fear of not meeting demand, because it can quickly respond to surges in demand. By producing in small but frequent batches, Zara (with the help of its 200 designers) has an immense product line capable of providing customers with unique garments.

 

 

 

 

Sources:

http://global.factiva.com.ezproxy.library.ubc.ca/ha/default.aspx

http://www.emeraldinsight.com.ezproxy.library.ubc.ca/journals.htm?articleid=1520075&show=abstract

http://dianeisabelle.com/2012/09/08/zaras-business-model-and-competitive-advantages/

 

Buy One Get One 50% Off

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By working at Sportchek for over two years, I’ve come to see the genius of the “Buy One, Get One Half” promotion. It has many intentions, but one of the main ones is to discriminate between customers.

For Sportchek in this case, the BoGo 50% sale captures parents buying shoes for their children. Targeting specifically those customers, the deal offers 25% for two pairs of shoes to families, and excludes certain customers whom aren’t looking to get more than one shoe. However, in many cases the BoGo 50% sale is significantly cheaper for the retailer than simply offering 25% on the promoted items. Really, the sale offers at most a 25% discount across two items, yet people don’t seem to view it that way. Countless people mention at the checkout that they were only looking for one pair of shoes, but they, “couldn’t pass up the deal”. Let’s say that a customer buys two pairs of shoes, the first pair costs $130, (as is common for most Nike shoes, and other brands of runners) and the second pair costs $70 (a common price for many “casual” and “walking” shoes), naturally, the discount is applied to the cheaper shoe. Some simple math reveals that the total discount is around 17% across both shoes. With this promotion, not only does the retailer discriminate between customers, but it also manages to squeeze extra purchases from some, while simultaneously convincing those extra spenders that they’re getting more value than they truly are.