Warren Buffett and Secrets of Management - 37
A really important thing to consider when talking about resisting the pull of sameness, mediocrity and commoditization, is that some companies learn to brand themselves so well in crowded markets, that even though it seems like they would be considered a commodity, they aren't.
I think of McDonalds (MCD) as one example of this. One thing that McDonalds has had going for it for decades is that they were the first fast-food company franchised all over the U.S. Being first to market in those days was a crucial part of business success. Of course in some fields today that is still true, but not like it was 20 - 30 years ago.
But with McDonalds, think of their hamburgers. Are they more tasty than their competitors? What do they have that other companies don't? Well, one answer to me is their french fries. But people, for the most part, don't go there to only get part of a meal. As a matter of fact, there are a lot of people that consider the hamburgers of their competitors more tasty.
Still they continue to be one of the strong, branded companies in the minds of their customers. Even the upcoming generation, when I hear them wanting to get hamburgers, almost always mention McDonalds before any others.
In the minds of their fans, they are set apart. They've went beyond being a commodity in a potentially highly commoditized field.
Even with the seemingly endless amount of times they get the meal wrong, consumers forgive them and keep coming back. Their success is related to branding, positioning, their system, and their product isn't bad.
They've made themselves different in the minds of their customers and as Buffett would say - has been a consistent performer for years.
Other Buffett Resources:
Investment Whiz Kid: Buffett Amasses a Fortune
Management Styles - The Buffett Way: Learn from the maestro himself
Brand names Commodity companies
THE REAL GENIUS OF WARREN BUFFETT
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