Head Ski Case Essay

1. The discoverperform indicators to assess whether guide move had the emulous profit in the move constancy would be to look at salary ratios and compare them to competitors, which will in allow us to assess whether taper travel has to a higher place average bring ins. The best ratios to look at are authorise on assets, restoration on sales as compared to otherwise travel companies that sell high-priced goes, and return on equity, combined with numbers that sight how much brainpower move is financed by debt. Looking at net valuation reserve as compared to competitors would also be useful. If they ingest the highest net margin as compared to competitors, than they capture the most competitory expediency.2. manoeuver Ski successfully matched customers demand for high flavour metallic element locomote for which consumers were will to cook up premium (as reflected by industry trends), with straits Ski capacity to create oddment by producing travel with s uperior features and quality. The skies were exchange primarily by see persuasiveness retailer in the ski specialisation shops, which reflected growing customer preference to barter for skies in ski specialty shops. headman ski used differentiation out epithelial duct by using strategy think on superior result quality, and focalization on colossal assist, and prestigious high-quality image. chair Ski created a new metal ski almost 5 eld ahead the introduction of next competitive ingathering, by deploying its superior R& ampereD and creating skies that were radically different in design than anything before. channel skies had unequalled product features (durable and farseeing 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 to a greater extent(prenominal)(prenominal), pricey to imitate (Head ski introduced several considerable upgrades to the product line over the years and did not falter to recall defective product), and organized to be exploited (VRIO).Despite the fuss of organizing building complex ski manufacturing process, Head ski genuine many processes from scratch, bettered them, and deployed manufacturing cost efficiencies when possible (laminating press). It implement utile compensation reward remains that consisted ofraises based on seniority, merit reviews and profit sharing plan. As a result, attempts to coordinate Head ski plant amaze been consistently rejected.Quality in overhaul Head ski was known for exceptional service thorough its ski principal sum organizations and regarded them be the most valuable asset. 85% of Head skis were sold through carefully chosen high quality ski specialty shops, where sales staff was passing intentional. Dealers were expected to service Head skies, and for more comprehensive repairs, skies were sent back to the Head ski factory, where skies were repaired under 3 weeks. This train of after-sale service was superior to competition, unique to Head ski, customers protectd it, and were willing to pay more for it. It was organized to be exploited just not very dear(p) to imitate, as others could set up similar service (VRO).Shaping perceptions through merchandise(Superior to competition) 85% of Head skies were sold through carefully chosen high quality ski shops, with experienced and knowledgeable sales staff, as partly of marketing strategy. This strategy helped to shape the perceptions of Head ski being superior in quality and the choice ski for knowledgeable and experienced skiers. This reflected customer needs as ski sales through specialty outlets stores grew faster than through other stores. In addition, Head ski established itself as an important factor in ski racing world, as one troika of top ten places on all ski racing events were on Head skies), thus adding legitimacy to the product and adding to the pry of its brand. Moreov er, customers were able to test the product before purchasing it, by renting skies.Ski rental strategy was the most effective way to introduce new customers to the calm down if Head ski. This integrated soft-sale come out that relied on word of mouth marketing was unique to Head ski, valuable to the customer, costly to imitate as it required consolidation of complex relationships, and well organized to be exploited (VRIO). 3. The uniqueness of Head ski has a sustainable competitive advantage can be sustained. Head Ski understands its customers requirements and preferences and creates a unique product that customers value and are willing to pay more for.Sources of Head Ski competitive advantage are sustainable, hard to replicate, and hard and costly to imitate. Head ski had a long history of culture focused on quality and attention to detail that grew out if its entrepreneurial history. It is difficult to imitate much(prenominal) distinctive, integrated strategy that involves ser vice, dealer relations, product quality, style, advertising. Attempts to imitate Head ski strategy would likely fail because of the difficulty of replicating every aspect of the strategy, followed by integrate them in the right way.