Topic > Magnatag Case Analysis - 1225

How is Magnatag trying to create a competitive advantage? Is this competitive advantage sustainable? The whiteboard is a fairly simple and common tool used in various professions to keep a visual record of information. Wally Krapt and his company, Magnatag Visible Systems, wanted to differentiate his version of the whiteboard, the Magnatag board, from the masses by focusing more on the factors that drive value and the customer's perception of value. Krapt emphasizes value factors in the following ways: technology, quality, delivery and customization. Their technology increases customer value through its ability to organize large amounts of data onto a system of pre-set graphs and grids. Normally, this information would be handwritten on the board, but without the same visual impact and organization as the Magnatag. A company can save time and man hours with the Magnatag by having equipment that can do most of the work for them. Additionally, Mr. Krapt had the ability to customize the board to the buyer's specific needs. Companies can request a simple, unique, economical table or it can be a system of complex tables. The card can be customized to the specific industry of the company using it and has its own set of specific supplies to use in conjunction with the card. Krapt's goal is to make shoppers feel like the Magnatag's usefulness is something they can't do without. One of Krapt's strengths is inventory practices that allow for fast turnaround times. Approximately three working days pass from the order to the delivery of the product. They are able to achieve this with very succinct inventory practices that involve having parts already pre-measured and cut for specific boards so as to save time in actually manufacturing the product. Although the main focus was on value factors, Mr. Kraft and his company appear to have a good mix of value and cost drivers. They produce their product in-house and only advertise through their website and catalogs. Most businesses find out about Magnatag through word of mouth. They do not sell their products through retail chains like most chalkboard manufacturers do. Due to shipping costs, the Magnatag board is only sold in North America. Traditionally, whiteboard manufacturers focus on cost factors.