Business Studies: Case Study "Crumpler"

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Case study: Crumpler
Topic 1- operations

* Product offered
* heavy duty bags for bike couriers

Role of operations management
Aim
* to differentiate the business’s products from its competitors rather than using a cost leadership strategy.

Crumpler’s aim has been achieved through:
* a better quality product
* a vast variety of products in its range
* incorporation of new technology
* Clever design

Influences on Crumpler’s operations
Globalisation
* Globalization has allowed crumpler to sell to more countries and markets. The expansion has allowed them to open stores in New York, Toronto and Singapore. * Crumpler bags are not available in Greece, Japan, and Hong Kong, China. * Its exports are at 6 million or 50% of total sales. * Recently, they negotiated with Apple, allowing them to provide their bags to more consumers. * Crumpler can outsource its manufacturing and now has a global supply chain. Operations costs have reduced as the other countries had lower costing inputs and labour. |

Economic
* There have been many changes recently, * the cost of oil has raised highly-due to the fact that crumpler’s bags using lots of nylon in its productions, its costs have risen highly. * the economy of Europe and Asia have fluctuated-due to the economic slowdown and the global financial crises, sales globally have dropped immensely. * cost of labour in Asia has risen-Asia’s labour|

Technology
* There have been recent developments in the production of clothing and communication. Computer aided manufacturing and designing was introduced allowing efficiency to be increased. * Headquarters started using email in its communication to allow faster transmission of messages within the company. * Three dimensional designing software allowed them to create new products virtually and, it could be viewed from a few perspectives.|

Design and manufacturing process
* All products are designed in Melbourne.
* Where does Crumpler purchase its materials from? Leather from Melbourne, Nylon from Taiwan and South Korea, canvas from china, clips from Japan, webbing from China, Luggage handles from Taiwan * Crumpler’s first and foremost criterion for their design team is strength and practicality. They use only the strongest materials, e.g. the shoulder straps are made from webbings used in cranes which can lift cars. The zippers are of high quality and will not break. Quality expectations

* Crumpler knew that consumers would use the bags to hold precious technology so, the highest quality was needed. * Crumpler bags are water resistant due to the nylon shell and the inner padding. * Customers expect quality from such a higher price.|

Competition
* Many of Crumpler’s competition cannot match their quality as they are made using lower cost inputs and materials. They are made from lower quality nylon. * Their closest competition is Lowepro and North face. |

Social and environmental sustainability
* Crumpler’s bags are built so that they last longer and can be repaired. This means that not as much resources need to be used to make as much bags for replacement. * Crumpler does not run their factories directly, it is subcontracted when labour standards are low. In their factories, they try to improve conditions where workers work, and have an independent monitor.|

Operations process
Inputs
Materials
* The key material inputs are heavy-duty rip stop nylon and thread to construct the bags. Crumplers’ bags have a water-resistant 900 denier shell. * A nylon ripstop nylon, which is super strong, lightweight, durable and resistant to fraying, tearing and ripping.|

Information
* Information from a parachute manufacturer enabled the business to start new stitching methods that added strength to the bags. * Extensive data for the design specifications for every model of bag ever produced...
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