Oxo Case Write-Up
Abstract: OXO International represents an example of a great company built upon a creative product concept. Instead of doing everything by itself, the company chooses to outsource both the design and manufacture process. By setting up partnership strategically, the company has grew fast and gained reorganization by both customers and professionals. However, as OXO wants to develop products targeting high-end markets with higher price points than standard kitchen gadgets, which requires more complicated product development process, the company is facing the choice of either keeping outsourcing designs or establishing its own design department. Also, if it stays on outsourcing designs, OXO has to choose which partner and in what way it
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First, it identifies the need of consumers by finding out what could be improved on the current product. Then, it finds out a good design team, the best possible agents and manufacturers, the appropriate distributors, and links them together. It sounds easy but it was actually really hard, as OXO has to create motivation for every partner to cooperate with it. So it builds up different kinds of partnerships described above. We can notice that there are also differentiations in partnered manufacturers and distributors, corresponding with the differentiations in product lines, which make the work of OXO more complicated than a simple “middle man.” It also does all the operations that are necessary for a business.
It sets up marketing strategies for the product. This is an important part of OXO’s job. OXO researches on the pricing and marketing strategy. Instead of advertising to consumers, which is too expensive for a small company, OXO promotes its products by building a publicity network and let the customer use the products to be aware of their advantages. Also, it creates a quarterly newsletter for retail buyers and sale representatives.
It provides the good reputation and represents the quality. The brand adds value to the product as it is a guarantee of product quality. When the company was a start-up, Sam Farber acted as “the person” that provided the experience and connection in the industry. As the company grows up, the brand of OXO serve