Dansk Designs, Ltd. :: essays research papers

Dansk Designs Ltd., founded in 1955, is a company that markets stainless steel flatwargon. The firm traditionally followed a dodge of differentiation. They produce high quality overlaps for the top of the tabular array. Their goal was to reach a small market segment, which consisted of upper class, esteemed customers. Dansk Designs wanted to sell the concept of the Dansk brand, and believed their consumers would purchase the Dansk products because of the prominent brand summon and because the products were the very best in taste and quality. Ted Nierenberg, the founder of Dansk Designs has recently distinct that he wants to keep Dansk growing at 15% to 20% per course of instruction. Nierenberg feels as if his current product transmission channel will not provide ample growth to meet his objectives, and believes it is in the companys best come to to introduce a new line of house ware products called Dansk foodie Designs Ltd. Nierenberg believes they should market this new l ine to a much wider group of consumers at competitive legal injurys. However, I believe that although expanding into a new market with a new product line will increase short-term revenues, in the long 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 lower 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 treasured 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 admit flatware, china, linen, glass, decorator cookware, and wooden bowls and trays. Their products are of high quality and are highly priced. Dan sk was able to achieve a differentiation advantage because their price premiums exceeded the extra costs of being unique. Dansk is able to create these unique products because of the capable designers they employ, including Jens Quisrgaard, Niels Refsgaard, and Gunnar Cyren. Another competitive advantage of a strategy of differentiation is the mightiness to deal with supplier power. There is a certain amount of lieu associated with being the supplier to a producer of differentiated products. Dansks straits supplier, Richard Nissen, has enjoyed working with Dansk because he believes they have been able to preserve the handcrafted nature of the products.