Blue Ridge Case Summary

Differentiation is blue ridges main competitive strategy, firstly because its production are based on each customers requests which for unique products. By following mass customization the firms marketing and production processes are designed to handle the increased varieties.

In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by its buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a premium price. Some firms using a focused differentiation strategy concentrate their efforts on a particular sales channel, such as selling over the Internet

They have a break-through technology in developing superior ink, and assuming that they patents this technology, this probably means that for several years to come, Blue Ridge would have a competitive edge against its competitors in the inking process. Blue Ridge’s towels would be considered superior in quality if other companies do not have this breakthrough in technology. In addition, since the non-toxic ink allows for avoidance of EPA disposal requirements, as it can be “washed down the drain”; these might possibly equate to cost savings. Thus instead of the more commonly known trade off between cost and differentiation occurring, the quality improvements might cause lower reject rates, lower cost of adjustments and repairs, and thus imply the possibility of Blue Ridge being a low-cost leader.

At the same time, upgrading to a better quality towel may even result in the product being sold at a higher price. However, to ensure superior profitability with a superior value strategy, the price premium the customer is willing to pay must exceed any costs of providing the extra