EOS was able to build a successful brand and to maintain that advantage over the years by applying some tenets to their business. The model for EOS started when co-found to the company saw an opportunity for the company to enter into the lip balm industry. This industry had not innovated or changed their product for almost a century and was not adhering to local tastes and preferences.
In this, EOS saw a opportunity to exploit what seemed like a complacent market. EOS decided to develop a new lip balm product offering that was very much different from the lip balm offerings that their competition had for sale. While the competition had a very limited number of flavors and products using synthetic petroleum jelly, which is a by-product from oil EOS developed a new blend sourced from ingredients that were found in nature. EOS then created these flavor combinations that were enticing to customers and created real interest in their products. Instead of something like cherry, blueberry acai was created and provided more interest to customers.
Using premium ingredients and unique flavors allowed EOS lip balm the ability to generate sales and capture a large part of the market for lip balm. However, it wasn’t the only step that EOS took to develop a long-term competitive advantage. The company also developed their own equipment which made their products harder to copy. EOS used revolutionary shaped orbs as a lip balm applicator that made their products different than the competition and easier to keep track of.
These strategies paid off and EOS was able to capture a large portion of the lip balm market and cement themselves as a leading company in the industry. Their product offerings on Racked were distinct and they continued to innovate with unique flavors and oil bases which helped their business to stand apart from the competition as a premium offering.
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