STUMP’S HOT OLIVES ARE MANUFACTURED BY A FAMILY BUSINESS IN WISCONS...
9. Stump’s Hot Olives are manufactured by a family business in Wisconsin and are sold in Midwestern
grocery stores, through mail order, and to a few local restaurants. The company has been in operation
since 1998 and relies on labor from family and friends to produce and package olives in attractive,
reusable glass containers. They use store demonstrations to introduce their spicy olives to new
customers. Discuss how this company can establish or maintain at least one of the three types of
competitive advantage.
ANS:
Student answers to this question will vary, but they should discuss one of the three types of
competitive advantage: cost, product/service differentiation, and niche strategies. Their answers
could include a cost competitive advantage, which can be achieved through no-frills goods and
customer service, efficient labor, production innovations (such as new products not currently on the
market), and the experience curve. A product differentiation competitive advantage might be achieved
by the use of the value impression (this possibility is implied in the description of the containers). The
company might also try selling an augmented product-offering by bundling pickles and pepper
products with its olives. The niche competitive advantage may be appropriate for this company. Some
students may suggest targeting gourmets or some other single market.
PTS: 1
REF: 34-36
OBJ: 02-6
TOP: AACSB Communication
KEY: CB&E Model Strategy
MSC: BLOOMS Level V Synthesis