Tao of timbuk2

Topics: Manufacturing, Messenger bag, Messenger Pages: 4 (784 words) Published: May 18, 2015
Case: The Tao of Timbuk2

Question 1
Comparison of the competitive dimensions of the messenger bag and new laptop bag ex-China Competitive Dimension
Messenger Bag
New Laptop Bag
Price
Higher
Lower
Quality
Competitive
Competitive
Delivery speed
Overnight
3 to 5 business days
Delivery reliability
Reliable
Risk of late delivery
Other dimensions (color, customization, size, weight)
Customized
Standard
Manufacturing costs
High
Low
Durability “Bags that are tough as hell and are build to last a life time” High
High
Philosophy “Its not a brand, it’s a bond”
High
Lower
Sustainability 1 – 20% discount if you return your old bag High
High
Sustainability 2 – “fantastic work environments”, “work environment like no other” High
Lower

Whilst the quality, customization, and price are maintained in the new laptop bag made in China; from the table, it is visible that delivery speed and delivery reliability could be compromised in view of the fact that a highly organized logistics system has to be put in place to ensure a reliable delivery schedule. Because of the distance factor, the overnight delivery option will not apply with bags sourced from China. Because of cultural and statutory holidays (e.g. Chinese New Year), there could be periods when Timbuk2 would be less responsive and customers might not be able to place and receive their orders on time. However, from the company’s point of view there is a benefit in terms of low manufacturing costs through lower labor costs, guaranteed high production volumes, and these act as trade offs to maintain competitive prices in the market, although clients have to get used to a slightly longer delivery time compared to the messenger bag produced in San Francisco. The company also stresses that the bags “imported” from China are still designed in San Francisco and all materials and construction details are specified by Timbuk2 to ensure that the manufacturing in China uses the highest quality...
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