Essay on Head Ski Company

811 WordsMar 13, 20124 Pages
SGMT X 6000 – STrategic Management | Head Ski Company Ltd. | Business-Level Strategy | | Pavel Tabak | 2/6/2012 | | Competitive Advantage Determinants Competitive advantage in a strategic environment is most often defined as having greater profitability than the average rival firm. As in the case for Head Ski Company Inc., we are not provided with extensive competitor information, thus only internal indicators will be evaluated. Profitability measures show a company’s overall ability to maintain efficiency and performance for their stakeholders. Some of the key performance measures for Head Ski in determining a true competitive advantage are as follows: ROA, ROI, ROE…show more content…
This quality assurance was best displayed through Howard Head’s statement that attention to detail is what separates Head Ski from their competitors and that even during tough financial times, any defects or quality deviants were recalled without hesitation. Furthermore, the design of the ski is crucial to the performance of the skier and needs to take into consideration the 3 core functions of: Tracking, Traversing and Turning. Although in the early years as per Mr. Head, the main concentration was to make the best ski for the general public, by 1966, Head Ski was the top choice for performance for both, unskilled beginners and the top professional racers. This advantage in performance was prominent in a major international competition where one-third of all top 10 finishers were using Head products. Additionally, Head Ski truly believed in functionality before style. While competitors often introduced 6-8 different colours yearly for their skis, Head stuck to the basic colour of black and rarely made any model changes unless performance was lacking. The simplicity of using one colour really made Head distinctive and unique on the slopes and ultimately creating a status symbol for the brand. The emphasis on selective dealer relationships was a very strategic and distinctive strategy by Head. Many large stores were declined the opportunity to

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