Victorinox

Victorinox turned a simple folding knife into a global icon by designing for extreme constraint. Founded in 1884, the company's Swiss Army Knife became standard issue for Swiss soldiers, then spread worldwide through military surplus and tourism. The product's genius is combinatorial: 10-20 tools in pocket-sized form factor, optimized for camping and outdoor use. But Victorinox faced existential crisis post-9/11 when airport security banned pocket knives from carry-on luggage, eliminating impulse purchases by travelers. The company survived by diversifying into watches, luggage, and fragrances while maintaining knife heritage. Annual revenue of $500M+ proves that even in commodity categories (knives, scissors), strong brand associations with quality and heritage create pricing power - but only if you diversify before your core market collapses.