ity pieces which includes the matte enamel Wok for stir frying Cookware essentials and accessories including teakettles, steamers and stock potsThere are reasons behind why the company has sought to broaden its product range. The most important reason could be perhaps that cast iron makes up only a small proportion of total cookware sales in any one market. By broadening its product range the company is seeking to expand its market share, its sales and its growth rate. Satisfying more customers would mean more sales and therefore more profit. Another reason would be the need to keep pace with the company’s main competitors like for example Tefal that already have a wide and established product range. This is directly related to securing competitive advantage in the market place through product development, innovation and diversification.Porter’s Concept of Competitive Advantage:Porter’s concept applies appropriately to the company. Innovation drives competitiveness. A firm thus must avail to all the dimension of competition: Factor Conditions: Le Creuset has successfully upgraded and transformed its factors of production especially its skilled labour. Although there is a fall in the number of production employees, the number of employees engaged in sales, marketing and distribution has trebled. This reflects restructuring and changes in the organisation of labour in the company. Demand conditions: the company has broadened its range of products to suit customer demands. The demand for cast iron cookware is quite limited in the market place. Thus the company has to broaden its product range to satisfy more customers. Related and Supporting Industries: Le Creuset has purchased a number of distribution firms in its key markets to help build its own distribution network that would make distribution more cost-effective and efficient. Firm Strategy, Structure and Rivalry: thi...
