Thanks for sharing!
I agree with you that Tabasco has a great operating model that ensures consistency in its product and flavor. I wonder how Tabasco was actually able to gain the intense following that it has. It’s one thing to have a great distribution network. It’s another thing to provide a product that people want to buy. How did the company convince people to buy Tabasco and gain the scale of brand name recognition that eventually became a significant barrier to entry for other players in the hot sauce market?
Very interesting! I thought your post brought out two great points:
1) Challenges brought about by competition i.e., counterfeits, necessitates innovation. I wonder if Hermes would have been able to innovate Petith in the same way if the pressures of counterfeits was not strong.
2) The business decision to scale would probably tarnish the Hermes brand as quality and client service would be more difficult to monitor and control. While I think Hermes could certainly amass the operational expertise to build scale, such a decision would not be beneficial for the business.