Differentiating activities – Jiffy Lube example

Founded in 1972 Jiffy Lube is a franchised drive through oil change shop that changes your oil & filters, tops up your other oils and vacuums your cars interior in less than 10 minutes and without an appointment. Unlike other motor mechanics and vehicle repair shops, Jiffy Lube is only focussed on fast oil changes at a low price and doesn’t claim to repair all problems with your car. However the items they do work on, they claim to know very well, use quality materials and provide a low price.

In particular Jiffy Lube has 3 main differentiating activities;

  • Only provides lubrication services – not other car repair services
  • Retail high traffic locations – not industrial estates
  • 10 minute turnaround no appointments required

These differentiating activities have been sufficient to drive a strategy which it didn’t make sense for traditional car repair shops to follow, and yet at the same time took significant revenues from these car repair shops. It is clear how Jiffy Lube segregated the market and developed a clear and different Core Customer (who didn’t want to pay for a full vehicle service, but still wanted to look after their car), how they then pursued their profit per x (lifetime revenue per car). Jiffy Lube is a case study in strategy, and in particular how to build the differentiating activities section of the Seven Strata of Strategy.

In this presentation, Jiffy Lube Co-Founder Steven Spinelli explains the Jiffy Lube story, how they differentiated and how ultimately they sold to a Fortune 500 company.

 

Jiffy Lube Strategy

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