High quality positioning and the success of reputable products |
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| Authors: | Evan Davis |
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| Affiliation: | Research Fellow at the Centre for Business Strategy, London Business School. The author is grateful to John Kay, Paddy Barwise and Gerard Hanlon. A slightly expanded version of this paper is available as Centre for Business Strategy Working Paper No 79. |
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| Abstract: | ![]()
It has become almost a conventional wisdom that high quality is an essential route to high profits. In this article Evan Davis shows that the truth is likely to be more complicated. The large profits that accrue to high quality producers are usually rewarding some inimitable production skill, or are reflecting the faith that customers have in the reputation of the producer to deliver a quality product in a market where quality is hard to monitor. For producers that do not have special skills, or who have no easy means of acquiring a reputation, the benefits of high quality positioning may not be great. |
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