How a $220 toaster explains why some brands struggle

Intelligent Investor

Independent Financial Research

‘A new world of bread needs a new world of toasting’ claims Breville (ASX:BRG). For only $220, its new ‘the Smart Toast’ toaster can ‘toast any type of bread just the way you like it’. You can even follow the toasting progress with an LED countdown. It sounds impressive, but does anyone care? Harvard strategy guru Michael Porter published his three generic competitive strategies in the 1980s. Breville’s smart toaster is a textbook case of one of Porters three strategies — differentiation. Differentiation works by making customers believe that one company’s product is different in quality to its competitors and justifies a higher price tag. It is a key foundation in the development of many of the world’s biggest brands. For many companies, differentiation has been a very successful strategy. Read full article: (VIEW LINK)


Intelligent Investor
Independent Financial Research

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