Thanks for your comment, Jackie! How much they focus on the human side of their operations was definitely what I found most interesting. I haven’t heard any news of them expanding into other products. I do know they offer some accessories!
Thanks for sharing, Ashley! I’d love to hear more about your trip sometime. I’ve also noticed that they’re relatively unknown outside of outdoor enthusiasts, and I’d be interested to find out if the company sees that as a priority, an opportunity, or a distraction.
Thanks for your post, Remi. It was refreshing to hear that scarcity has its limits, and really interesting that such a luxury good company could model its production off of the Japanese electronics industry.
Your post reminded me of the TOM simulation and what we learned in class about assembly lines, cross-training, and physical layouts. I learned that LV improved efficiency by cross-training its employees to reduce lag time between production steps and made use of the physical U-shaped layout to minimize the time of moving the product between stations. It’s also interesting how they use technology in order to catch defects in the material as early in the production process as possible.
Anish, thank you for writing about OYO. I had never heard of the company, and it’s impressive how fast they grew. They really capitalized on the fragmented industry, and I agree with you that there were some strong first-mover advantages there.
I didn’t expect that they’d use their mobile app to create value beyond the transaction of booking a room. Letting customers order room service through the app feels like an effective way to link good service with their brand. I worry about the other feature of extending the services to the home. You said that this feature creates value for the hotels by giving them other sources of revenue. However, the feature feels very distracting and misaligned to their business model of being a hotel brand. Offering cleaning services and delivering food is another business.
Thanks for writing, Michelle. I had never heard of Harry’s, and I learned a lot about the company from your post.
The vertical integration piece stood out to me, and I agree with Maclean that it helps Harry’s create more value for its customers. It enables them to offer a high-quality product at lower prices, and it gives them credibility that is valuable to a new entrant into the market. I expect that it will take years for Harry’s to grow (given its organic growth model), but vertical integration, online sales channel, and ownership of customer behavior data positions it well for the long-term trajectory.