<sniiiiiiiiiiiiiiiip>

> >Needless to
> >say this offers the advantage of not having to think about alot of details
that
> >ultimately adds to the confusion and clouds the ability to focus on whats 
> really
> >important.....survival. So I guess my question to start with is why is cave
> >diving any different, All are hostile potentially disasterous environments
and
> >so why would the response mode be different for one and not the others. I
guess
> >the thought that no variation breeds total familiarity and consequently 
> promotes
> >a safer encounter is what is stuck in my mind. I know its radical and not
real
> >world to expect that all cave divers be equipped identically but it sure does
> >sound as if, if there could be an agreement on the universal configuration,
> >emergency response and technique it would ultimately lead to the conditioned
> >reflex  making everything easier when it came to potential disaster
avoidance. 

Here's my idea on this. Put your business hat on as this is what it comes down
to. Let's take something everyone can understand...toothbrushes. Brushing your
teeth is paramount to good health. Right? I think we can all agree on
this. So, why are there so many different types of toothbrushes on the market?
Can't everyone get together and just make a toothbrush that is *the* most
effective form of combatting tooth decay? Of course they can. So why don't
they?

It all comes down to this...

In a competitive environment, a business' goal is to make superior
profit. That is, to earn a return on its investment that exceeds those earned
by other participants in the market. The way to do this is to create a
"sustainable competitive advantage". There are four basic strategies for
businesses to pursue a competitive advantage:
	1. Cost Leadership
	2. Differentiation
	3. Focused Low Cost
	4. Focused Differentiation

Now, think about the resources needed to create a rig like the one in "Doing
It Right". The methods of production and the raw materials are available to
everyone at the same price and in the same quantity. So if the manufacturers
are going to build this rig, they will not be able to compete on Cost
Leadership or Focused Cost Leadership as it does not give them a sustainable
competitive advantage over other competitors. Thus, preventing the firm from
making superior profits in the marketplace. It is a commodity product that
anyone can build and sell. There is no margin for profit.

So what is left for the manufacturer of dive gear to do? If they cannot
compete on cost because their competitors can make it as cheaply as they can,
then they must either abandon the market segment (technical diving) or
differentiate their product from the competitors. This is where the
convolutions come in. The marketing department is asked to come up with ideas
for where the technical diving market segment is not currently being serviced
by others. In other words, what do technical divers like and dislike about
their current gear. The marketing department goes out and obtains this
information from god-knows-where and brings it back to the engineers. The
engineers take the information and build the equipment.

Think about this. Think about things that the marketing guys would have heard
from some divers. "My BC is uncomfortable" "I wish I had more places to stow
stuff on my BC" "I wish I had more lift in my BC" Everytime you look at a
convoluted offering from a manufacturer, try to think about what need they
perceived as being met by their convolusion.

Okay, I am getting away from basic business strategy and harping on product
development. Let me reel this back in for you. In short, when a firm cannot
obtain a cost advantage over competitors, it must differentiate its product
from competitors' products in order to be able to charge a premium for its
product. In layman's terms, they need to have something that they can point to
and say, "Hey, ours costs more because we provide you with <insert whizz-bang
feature here> that our competitors don't have". The idea is to create a
price/value trade-off that makes people feel that your product provides
greater value for the price. I will not get into whether this "value" is
perceived or actual. We don't have that much time.

So, as a manufacturer of dive gear or a manufacturer of toothbrushes, if your
product offering does not provide equal value as the competition at the same
price, then you must provide greater value than the competition that consumers
are willing to pay a premium for. If you don't, your competitor will.

Why aren't manufacturers offering the rig used by WKPP? There's no money in
it.

Please don't take this to mean that I think other manufacturers of "technical"
dive gear provide actual value. I believe they are providing a *perceived*
value that people are willing to pay for.

I hope this did not bore the hell out of all of you, but I worked so hard to
get an MBA, I need to use it *somewhere*. If you would like me to clear up any
of my points, drop me a line.

Jeff.
-- 
+---------------------------------------------------------------------------+
| jjackson@se*.sb*.co*                                                  |
+---------------------------------------------------------------------------+
| Why do there have to be rules for everything? It's gotten to the point    |
| that rules dominate just about every aspect of our lives. In fact, it     |
| might be said that rules have become the foot-long sticks of mankind.     |
| --Jack Handey                                                             |
+---------------------------------------------------------------------------+

Navigate by Author: [Previous] [Next] [Author Search Index]
Navigate by Subject: [Previous] [Next] [Subject Search Index]

[Send Reply] [Send Message with New Topic]

[Search Selection] [Mailing List Home] [Home]