15 Capstone® Computer Strategies - 15.6 Ferris - Niche Differentiation


15.6 Ferris - Niche Differentiation

The Ferris computer team will adopt a Niche Differentiation strategy that focuses upon the high technology segments (High End, Performance, and Size). We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, easy accessibility, and new products. We will develop an R&D competency that keeps our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. We will price above average. We will expand capacity as we generate higher demand.

Vision Statement

Premium products for the technology oriented customers:Ferris brands define the cutting edge. Our primary stakeholders are customers, stockholders, management, and employees.

 Research and Development (R & D)

We will keep our existing technology products (Fist, Foam, and Fume), phase out Fast and Feat, and introduce new technology new products in the High End, Performance and Size segments. Our goal is to offer technology oriented customers products that match their ideal criteria for positioning, age, and reliability.


The Ferris team will spend aggressively in promotion and sales in the technology segments. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. We will price at a premium. In the low technology segments we will exit gracefully, harvesting our Fast and Feat products as they exit the Low End segment.


We will grow capacity to meet the demand that we generate, avoiding overtime when possible. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with the high technology segments as they move across the perceptual map.


We will finance our investments primarily through stock issues and retained earnings, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0. We measure performance in terms of ROS, Asset Turnover, and ROA.