Threadless Case

Chin Yu (Jimmy) Chang

Threadless Case

(a) What is the most important "asset" that Threadless has that is the key to its continued growth and profitability? 

(b) For what other products and industries would the Threadless model for product development work? Provide examples to back up your viewpoint.

Threadless’s most important asset is the loyal community of more than 500,000 people that is constantly supporting their company. The community grew organically so everybody within the community loves Threadless as a company and has deep connection with its brand. The community is made up of people who genuinely love and support the company – consumers who want to go on the Threadless website and buy new shirts. The community is the lifeblood of Threadless’s business model; it’s both the supply and the demand. Designers within the community submit designs, and then the community as a whole critiques and selects their favorite design. The demand for the winning design is always there since the community selected the winner. The community grows organically by word of mouth – the most valuable marketing strategy.  By having a growing community, Threadless is able continue its growth and profitability.

         A brewery can mimic Threadless’s model for product development by holding a contest for fans to come up with their favorite beer flavor. To win the contest, the fans will all vote on their favorite flavor beer. By implementing this business strategy, the brewery can organically increase the number of in their “community” and come up with new and exciting flavor beers consistently. Again, the brewery does not need to worry about the winning flavor not selling or doing well, because their community had voted on their favorite flavor beer.

Another example of a product and industry is an ice cream store. Similarity, the ice cream store could hold contests on their website to see who can come up with the most popular ice cream flavor. The flavor with the most vote by the end of the contest will be chosen and the store will sell that specific winning flavor. As an incentive for participation, the store can offer gift card or monetary reward to the winning participant.

In conclusion, the most important aspect for Threadless’s business model is the actively engaging community that they had built up organically. By giving their customers a sense of belongingness and inclusion of their brand and company, Threadless is able to build brand equity quickly and resonate with their community emotionally.