DeFeet International DeFeet International Started as a Cyclist Sock Company. the Founder

question 73

Multiple Choice

DeFeet International
DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out. The socks were of special materials aimed at giving the cyclist the most comfortable fit. These socks were not the traditional white socks but bright, bold, and flashy colored socks with cool graphics. These high tech socks were priced around $10 a pair. Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand. The company branched into running, hiking and snow gear. Their products include socks, armskins, calfskins, boxer briefs, gloves, and shirts for the serious athlete. They also have a custom department where socks, armskins, and gloves can be customized with any motif including sponsor types of logos like Michelin, Pabst Blue Ribbon, or BP. Even kids can enjoy DeFeet's high quality socks. DeFeet's products can be found in retailers across the world, in more than twenty countries, like Israel, Australia, Belgium and the United States. More than two-dozen online retailers also carry their products.
-Refer to DeFeet.What kind of competitive advantage would you say DeFeet has?

• A) Low cost
• B) Niche
• C) Product/service differentiation
• D) Product Development
• E) Diversification

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Definitions:

Inventory

The term for goods and materials that a business holds for the ultimate goal of resale.

Trading Securities

Investments in debt or equity securities that are purchased with the intention of selling them in the short term to profit from price fluctuations.

Unrealized Loss

A loss that results from holding on to an asset that has decreased in price, but has not yet been sold or officially recorded in the financial statements.

Fair Value

The estimated market price of an asset or liability, considering factors like utility, demand, and supply conditions, to ensure an accurate valuation.