By Robert Miller | Portfolio Manager at NAOS Asset Management
Podcast Review | Rolex: Timeless Excellence by business breakdowns
Forget the fact this is a luxury watch company, as this podcast isn’t really about that. Think of it as a widget company that has a steadfast approach to its operations, which in turn drives quite a unique company culture.
Up front, it is worth establishing that Rolex appears to be a very secretive company. Details on their operations are scant, however, what we do know is that it has been in operation for over 110 years and is in fact, a family-run, non for profit. Their manufacturing operations are extremely vertically integrated to the point of owning and operating their own foundry(s) that produces the metals and alloys used within their watches.
Rolex does not overextend themselves despite the potential financial windfall from doing so. The business model is to sell all watches wholesale to certain distributors. They are not retailers, they are manufacturers. In addition, they only partner with brand ambassadors whom Rolex believe exactly represent their core company values and will be with them for life.
This is a fascinating podcast that has many important business lessons. Some that hit home for us, which we believe can be translated to any industry include:
- Understanding what you are good at, what you’re not good at, and then sticking to your core competencies;
- Having quality and integrity in everything you do as an organisation;
- Adopting a long-term mindset in everything you do;
- Under promise and over-deliver.
Link to podcast
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