Ferrari has surpassed all exclusivity; no matter how much cash is in your wallet you cannot buy the newest Ferrari without an invitation. In fact, if you haven’t already received a call from Ferrari you’re out of luck- they’re sold out. Thee Ferrari Sergio, produced in partnership with italian designer Pininfarina, was released with a total of 6 on its production belt. This is a drastic step for a car company to take, as one can only imagine the amount of money spent making and designing a car to only release 6. While their demand will always be high due to brand recognition, the company has always upheld a reputation of exclusivity to what may be viewed as too much by some of its fans. Ferrari has agreed to increase production of all base models by 5% within 2015 to ensure their waiting lists “don’t get too out of hand” (Petroff, 1). Then why create a car so private it is virtually unattainable?
Compared to other high end, exclusive dealers, Ferrari has recently been increasing their production in order to tap into customers with available capital to purchase their product however have suffered from unavailable supply. Over the pat 3 years, Ferrari has released double the amount of production in their models compared to Aston Martin, and almost 1/3 more than Lamborghini. This is a huge competitive advantage as they are not losing nearly as many customers due to their increased “availability” of products, especially when compared to the number of customers they are gaining due to their “abundance” of high end cars compared to Ferrari. In addition, loyal customers will not view the brand as distasteful or less exclusive due to higher production numbers, as their brand image and reputation has already been so solidly established. The operations of this change of pace by Ferrari has obviously increased revenue, but also has instilled a sense of hope within Ferrari fans all over the world that they can purchase a Ferrari without as much hassle. It is hard enough to attain the capital to comfortably purchase a Ferrari, however that seems to have only been half the battle due to the brand’s insistence of privatization. Do you feel this is a good or bad move on Ferrari’s end? Will their new production model effect their image down the line?
With an abundance of phone carrier options available to choose from, it’s often difficult to even pinpoint which company has the best price after comparing all the different options included in that specific offer. It is becoming increasingly more difficult, yet imperative, than phone providers develop creative and attractive offers beyond just pricing. AT&T revealed some of their recent stand-outs, and how these have placed them in the top tier of their industry.
“There’s more to AT&T than just a wireless phone service, which is running into hurdles to further growth as the industry matures. The AT&T U-Verse TV service has become a major growth engine, bringing Internet-based entertainment to nearly 6 million American households”. By sustaining their growth model through different avenues other than simply wireless service, AT&T has managed to create a mark in the phone industry rather than become lost in the battle like some of their competitors. From an operations standpoint, this company has managed to retain their customer loyalty but continuously improving services already offered, while introducing new ones at the same time. If one was to use AT&T for their wired and wireless phone services, AT&T is able to offer a quadruple of entertainment including phone, TV, and internet services. The only company than can even compete with offering such a bundle at the moment is Verizon. In addition to offering a bundle pack of entertainment, AT&T chose to package their wireless services together, creating simplicity for their customers and a higher revenue for themselves. “AT&T’s family plans with shared data subscriptions were controversial at first, but customers have embraced the shared-data model…This is significant, because AT&T charges much more for these larger data plans”. Lastly, keeping up with smart phone prices has been a task that has left many competitors limited. AT&T has been happy to offer their customers the lowest price for new smart phones to hit the market, and an even cheaper line of “good-looking, functional devices” that attract customers for not just their price but also functionality and ability to keep up with fellow Android and iPhone users.
Acknowledging the fierce competition between industry leaders, AT&T has taken their operations from a one-track minded operation to a multi-facet organization. How do you feel their marketing has done to voice these differences? Do you feel their operational efforts have been understood by the consumer?