Tao of Timbuk2

Case of Timbuk2

GOALS

• To expand its special qualities
• provide design capacity to a broader range of products and a wider audiences
• overnight shipping at any cost
• reach up to their customer satisfaction by allowing them to put their own design, creativity, size and colors together and allow them to customize their dream bag

Timbuk2 Custom Manufacturing in San Francisco

TIMBUK 2 , A MESENGER BAG

Comparison of competitive features of New Messenger bag and New Laptop Bag

Comparison of the China and the San Francisco Plants

• Established in San Francisco
• Founded in 1989
• Founded by a former bike messener, Rob Honeycutt
• SERVED THEIR CUSTOMER FOR 24 YEARS NOW
• 88 % Male Custom Bags
• 12 % Female Custom Bags

Issues Addressed

• Job Outsourced to China, Vietnam and Indonesia.
• Mass Customization adds more cost to the bags.
• Bags produced locally adds 30% more cost to it.
• Competitive market (Other companies are also producing high quality bags, cheaper, trendy and stylish)

Issues Addressed

According to the case question key competitive dimensions that are driving sales for the custom messenger bags

are:

• Best known for high quality bags.
• Lifetime Warranty.
• TImbuk2 do-not use materials considered toxic by the global.
• Blue sign verified.

Conclusion

THE TAO OF

Group 9

Jane Klein

Sehar Memon

Johnny Pany

Ming Sherpa

Maheswar Tamang

Aaran Tullock

Company Overview

• Timbuk2 is a San Francisco based manufacturing company specialized in customized bags
• They want to expand it’s operations to provide design capacity to broader range of products and wider audience.

Issues with expansion

• The conception customers may have of them by outsourcing
• Potential loss of quality due to cheap labor Solutions
• Smarter marketing techniques
• Periodically monitor overseas plants
• Future Issues and Solutions

Trade offs

• Maintain good quality control

Also,

Future Considerations

We Would Need To Mantain Quality Control

• Periodic Evaluations
• Adapt as needed

We Would Need To Maintain A Good Brand Image

• To Retain Loyal Customer Base
• Attract More of the Market

What will happen if demand falls because of changes Timbuk2 implements?

• We will need to keep an eye on holding costs, transportation costs, and managing costs.

• Exporting jobs from the United States

Cons of Outsourcing

OUTSOURCING

• Foregone tax revenues from the United States to China

• Due to mass production, quality depletion can become an issue

Benefits Of Outsourcing

• Mass Production Capability
• Cost and Efficiency Savings
• Establish Positive Foreign Relations

• 1990 received its first wholesale order from “The Bike Gallery” in Portland, Oregon.
• 2002 the laptop carrying case is introduced
• 2004 Timbuk2 launches complete line

Mass Production

• High demand as popularity increased and product line expanded
• Messenger Bags guarantee overnight delivery.

• Risk-shipping finished products to China and back, inclement weather, foreign policy, natural disaster may cause delay

Cost and Efficiency Savings

Build Foreign Relations

• Keeps prices of product low for consumers
• Reduced Overhead
• Low Inventory Cost for international market

• China Inclusion into the World Trade Organization (2001)
• China gives tax breaks and incentives
• Introduce Product to a new market