Ebags Case Study Week 1

Topics: Drop, Luggage, Competence Pages: 2 (407 words) Published: July 8, 2011
Week 1 Application:
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As eBAGS developed internationally and into different products their mission never changed. The mission of eBAGS is to provide quality luggage to the customer at a reasonable price. “eBAGS sought to reduce industry fragmentation and bring the customer closer to the manufacturer by bringing a diverse collection of brand – name products into one online store location” [ (Schroeder, Goldstein, & Rungtusanatham, 2011, p. 509) ] . They continued to develop this mission as the moved into a global market and began to take on different products other than luggage.

Distinctive competences of the people involved help eBAGS to grow into an international company. “Distinctive competence is a set of unique capabilities that certain firms possess allowing them to make inroads into desired markets and to gain advantage over the competition; generally, it is an activity that a firm performs better than its competition” [ (Distinctive Competence, Encyclopedia of Business, 2011) ]. All of the members of eBAGS was experienced in the luggage industry before starting the company. This gave eBAGS a competitive advantage over the other competition. “Nordmark and his team’s experience in the luggage industry provided a strong foundation for success” [ (Schroeder, Goldstein, & Rungtusanatham, 2011, p. 509) ].

eBAGS objectives are to keep the customer in a close relationship with the company and the manufacture. At the same time they want to keep the cost at a minimum while the quality at a high standard. “eBAGS began by developing strong relationships with major manufactures and by marketing four different product lines; bags, business cases, hand bags, and backpacks.” [ (Schroeder, Goldstein, & Rungtusanatham, 2011, p. 509) ]. The use of drop – ship model helped eBAGS to reduce holding cost. “For eBAGS, the drop – ship model practically eliminated the need for inventory, thereby reducing holding costs below those of traditional...
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