Repeatability

R EPEATA BILI T Y

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Low cost was the dominant differentiating feature in about

60 percent of the Great Repeatable Model companies that we

studied. The companies in this group typically achieved dif-

ferentiation through cost position in at least one of three

ways: (1) economies of scale and the ability to achieve higher

levels of productivity in manufacturing (e.g., ArcelorMittal),

(2) superior supply chain management of a set of vendors

(e.g., Wal-Mart, Li & Fung), and (3) pure network economics

(e.g., Vodafone). Unique product and service features were

the dominant form of differentiation in about 30 percent of

cases. These were most often driven by brand (e.g., Virgin’s

set of businesses), patentable product features ...