Ferrari intentionally produces fewer cars than there is demand for, regardless of how much capital they have to expand.
- Unique Strategy: They prioritize “exclusivity” over “volume.” Their revenue grows by increasing the value and customization of each unit sold, rather than selling more units.
- Why it’s hard to replicate: This works only because of their 75+ year heritage and the “Veblen good” status of the brand. For most companies, refusing to meet demand would simply drive customers to a competitor.
