American Girl dolls are nice. But they aren't amazing. In recent years Toys" R" Us, Walmart, and even Disney have all tried to challenge American Girl's success with similar dolls {Journey Girls, My Life, and Princess & Me}-at a fraction of the price-but to date, no one has made a dent. American Girl is able to command a premium price because it's not really selling dolls. It's selling an experience. When you see a company that has a product or service that no one has successfully copied, like American Girl, rarely is it the product itself that is the source of the long-term competitive advantage, something American Girl founder Pleasant Rowland understood. "You're not trying to just get the product out there, you hope you are creating an experience that will do the job perfectly," says Rowland. You're creating experiences that, in effect, make up the product's résumé: "Here's why you should hire me." That's why American Girl has been so successful for so long, in spite of numerous attempts by competitors to elbow in. My wife, Christine, and I were willing to splurge on the dolls because we understood what they stood for. American Girl dolls are about connection and empowering self-belief-and the chance to savor childhood just a bit longer. I have found that creating the right set of experiences around a clearly defined job-and then organizing the company around delivering those experiences {which we'll discuss in the next chapter}-almost inoculates you against disruption. Disruptive competitors almost never come with a better sense of the job. They don't see beyond the product.
( Clayton M. Christensen )
[ Competing Against Luck: The ]
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