Tyler Wilson
October 14, 2014
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Table of Contents
1) Key Success Factors i.
Understanding and improving points of parity over points of differentiation analogous to strategic competitive advantage.
1.
Aaker, D. (2011). Creating Advantage: Synergy and Commitment vs. Opportunism vs. Adaptability. In: Strategic Marketing
Management, 9 th ed. John Wiley & Sons, Inc., pp.121-137
2) Value Proposition i.
Matching quality with performance of a market offering
1.
Aaker, D. (2011). Creating Advantage: Synergy and Commitment vs. Opportunism vs. Adaptability. In: Strategic Marketing
Management, 9 th
ed. John Wiley & Sons, Inc., pp.121-137
3) Strategic Commitment i.
Clearly defining a business strategy, its points of differentiation, and sticking to your knitting.
1.
Aaker, D. (2011). Creating Advantage: Synergy and Commitment vs. Opportunism vs. Adaptability. In: Strategic Marketing
Management, 9 th ed. John Wiley & Sons, Inc., pp.121-137
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Twin Peaks’ business strategy, “breastaurant model,” exhibits a sustainable competitive advantage over its competitors. Devin Leonard reports that Twin Peaks is the fastest growth restaurant in the United States because of its ability to uniquely serve the male segment beer and barlike food from attractive women (Leonard). Twin Peaks’ CEO, Randy DeWitt, attributes the business’ successful challenge to Hooters. Like Tilted Kilt Pub and Hooter, Twin Peaks’ vision is find gorgeous, young women to serve beer and wings in skimpy costumes (Peterson). Twin Peaks is special because it exercises a clearly defined, value driven strategy and stays loyalty and passionate to its implementation and improvement of the strategy .
Twin Peaks’ key success factors are its target segment, recruitment, sales and beauty training, restaurant locations, and food and beverage distribution and production (Aaker, Leonard,
Lutz, Peterson). Without these points of parity Twin Peaks cannot compete. These points of parity allow Twin Peaks to develop, implement, and execute points of differentiation . Ultimately, a strategic competitive advantage is achieved because of these key success factors, which is like an ante to see the cards at a game of poker (Aaker).
Twin Peaks’ exhibits the strategic competitive advantage of quality because of their high benchmark of service . Based on Aaker’s definition, Twin Peaks’ value proposition is attractive women, wearing revealing clothing, servicing [mostly male] customer’s beer and food (Peterson).
Their moto: eats, drinks, scenic views (Jamieson). The value proposed by Twin Peaks is clear to its male segment
. One customer says lingerie night makes him nervous, but it’s this kind of reputation that motivates the male segment to convert and spend money at Twin Peaks (Lutz). The company uses an extensive recruiting process as well as continuous coaching of their staff to stay competitive
(Leonard). As well as producing high quality food, made from scratch, and beer served at ice cold temperatures to create what DeWitt testify as, “something special,” (Leonard).
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The only concern with demonstrating a strategy that resonates well with the male segment is an ability for competitors to mimic the strategic advantage (Aaker). Yet, Twin Peaks exploited this concern by opening competing twenty-two years after Hooters first demonstrated the,
“breastaurant model,” (Leonard). The difference between Hooters and Twin Peaks is their level strategic commitment .
Twin Peaks demonstrates a superior strategic commitment over it competitors because of its devotion to recruiting, continuous improvement, centralized structure, eye-on-the-ball focus, and willingness to take risks (Aaker). Leonard reports the multi-point server appearance inspection routine before every shift as wells sales training so customers will empty their wallets as its point of differentiation . This kind of commitment and uniqueness to the breastaurant strategy is why a single Twin Peaks restaurant generates $2.6 million more than its closest competitor, Tilted Kilt, and why Twin Peaks pulled a successfully challenge to Hooters (Leonard). Commitment also means restricting hiring when available staff is low or taking a loss to pay employees when sales dip down.
Hooters became a family oriented restaurant by decentralized itself and respond quickly to staggering sales. This move prompted sales of Hooters’ 360 chains to become virtually flat (Leonard,
Peterson). DeWitt understood the environmental signs when he realized family style restaurant chains were under-performing in Lewisville, Texas. Attractive women, wear virtually no clothing, serving high quality bar food paired with beer at bone-cold temperatures catered to the male segment as a strategy commitment of quality service secured DeWitt’s strategic competitive advantage (Leonard, Aaker).
Many restaurants hire attractive women to serve beer and food to men, yet Twin Peaks demonstrates that with the right points of parity, a clear and communicable value, continuous improving, and staying focused to the strategy will ensure a strategic competitive advantage .
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References
Aaker, D. (2011). Creating Advantage: Synergy and Commitment vs. Opportunism vs.
Adaptability. In: Strategic Marketing Management, 9th ed. John Wiley & Sons, Inc., pp.121-137
Jamieson, D. (2014). 'Breastaurant' Feud: Hooters Sues Rival For Stealing ‘Trade Secrets’.
[online] The Huffington Post.
Leonard, D. (2014). Twin Peaks: 'Hooters Just Wasn't Racy Enough'. [online] Bloomberg
Businessweek.
Lutz, A. (2014). This Racy 'Breastaurant' Is The Fastest-Growing Food Chain In America.
[online] Yahoo Finance.
Peterson, H. (2014). This Celtic-Themed 'Breastaurant' Is Taking Over Hooters' Business.
[online] Business Insider.
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