Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read this mini case. Perform a resource analysis of the case (no essay needed). Add a summary sentence. Soft soap was the brainchild of Minnetonka's

image text in transcribed
image text in transcribed
Read this mini case. Perform a resource analysis of the case (no essay needed). Add a summary sentence. Soft soap was the brainchild of Minnetonka's CEO, Robert Taylor. The idea of putting liquid hand soap in a pump container for home use was novel at the time. Taylor knew that the most likely competitors would be large companies like Proctor \& Gamble who were good at developing and marketing new products for the home and personal care markets. Had Taylor forged ahead without any form of internal analysis he would have rightly developed a great product. He knew the liquid soap would be easy to manufacture and that he could buy the pumps from one or both of the two existing pump manufacturers. Proctor \& Gamble, and probably others, would have quickly imitated his product and most likely driven him out of business. These other manufacturers were many times larger than Minnetonka. However, Taylor engaged in a form of internal analysis by recognizing that even though these larger companies had a resource advantage when it came to manufacturing and marketing the liquid soap, they had no advantage when it came to the pump bottles. He recognized that if he bought all the pump bottle production of the two manufacturers he quickly imitated his product and most likely driven him out of business. These other manufacturers were many times larger than Minnetonka. However, Taylor engaged in a form of internal analysis by recognizing that even though these larger companies had a resource advantage when it came to manufacturing and marketing the liquid soap, they had no advantage when it came to the pump bottles. He recognized that if he bought all the pump bottle production of the two manufacturers he would have an advantage over firms much larger than Minnetonka. Taylor bought all the pumps that the two manufacturers could produce in a year. He paid more for these orders of pumps than Minnetonka was worth at the time. The strategy worked. He had a 12-18 month lead over his much larger competitors in which he was able to establish the Soft-soap brand and capture the market share. (Brandenburger \& Nalebuff, 1995, The Right Game: Use Game Theory to Shape Strategy, Harvard Business Review)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Redesigning Innovative Healthcare Operation And The Role Of Knowledge Management

Authors: Murako Saito

1st Edition

1605662844, 9781605662848

More Books

Students also viewed these General Management questions

Question

1. What does a production possibilities curve illustrate?

Answered: 1 week ago