Dansk Designs, Ltd. :: essays research papers

Dansk Designs Ltd., founded in 1955, is a company that marts stainless steel flatware. The firm traditionally followed a strategy of differentiation. They produce high quality products for the top of the table. Their finale was to reach a small market segment, which consisted of upper class, prestigious customers. Dansk Designs treasured to sell the concept of the Dansk smirch, and believed their consumers would purchase the Dansk products because of the prominent brand name and because the products were the precise best in taste and quality. Ted Nierenberg, the founder of Dansk Designs has recently decided that he wants to keep Dansk growing at 15% to 20% per year. Nierenberg feels as if his incumbent product line go forth not provide sufficient product to meet his objectives, and believes it is in the companys best interest to divulge a mod line of house ware products called Dansk Gourmet Designs Ltd. Nierenberg believes they should market this new line to a much wider gr oup of consumers at agonistic prices. However, I believe that although expanding into a new market with a new product line will increase short-term revenues, in the pertinacious run it will be detrimental because the new line will dilute the brand identity of Dansk Designs. If Nierenberg wants to grow every year 15% to 20%, I believe he should consider ways to commence costs instead of increasing volume and revenues.     Traditionally, Dansk Designs followed a strategy of differentiation. When a firm follows this strategy, they create differences in the firms product or service by creating something that is perceived as unique and valued by customers. Differentiation can take many forms, including prestige or brand image, which Dansk decided to implement. Their product line consists of eight product categories, which include flatware, china, linen, glass, room decorator cookware, and wooden bowls and trays. Their products are of high quality and are super pr iced. Dansk was able to achieve a differentiation advantage because their price premiums exceeded the particular(a) costs of world unique. Dansk is able to create these unique products because of the talented designers they employ, including Jens Quisrgaard, Niels Refsgaard, and Gunnar Cyren. some other competitive advantage of a strategy of differentiation is the ability to mickle with supplier power. There is a certain amount of status associated with being the supplier to a producer of differentiated products. Dansks principal supplier, Richard Nissen, has enjoyed working with Dansk because he believes they have been able to preserve the handcrafted nature of the products.