Get The Sickness!

My Hats Off the Jack

I look back at the twelve years I spent working at Jack In The Box (JBX) with warmth and many fine memories. It was during my experience there that my thinking on competitive strategy galvanized as each week the relative competitive advantage of the Jack In The box brand was tested against the offerings of much larger competitors like McDonalds, Taco Bell, Burger King, etc.

Early on, Jack In The Box leadership realized that trying to compete directly against the McDonald's was an effort of futility. Differentiation and the development of competitive advantage became the watchword and during my time there, over 100 products were launched. During a recent visit to Jack In The Box (I do still go there from time to time) I tried their new Sirloin Steak Melt. It was a delightful taste that combined the Grilled Sourdough bread that was introduced in 1989 along with the Sirloin Steak which has come back periodically in various transformations since it was first introduced in the early 1990's. The memory of those flavors encouraged me to try their newest version which got me to spend $4.29 for a sandwich in an industry where the Jumbo Jack and all of the signature burgers at competitive restaurants battle over the $2 burger.

In the years that have followed, I'm happy to report that the team at Jack In The Box has continued to successfully pursue this strategy which gives me not only the opportunity to stop in for a tasty meal but also a financial reward. After the eColi issue in 1993, I felt that the market had oversold Jack In The Box stock and I purchased shares in my retirement account at the equivalent of about $3. Even with the recent decline in their share price to the mid twenties, this has turned out to be a tasty investment.

posted by Michael Sick @ 1:36 PM