Case: The Tao of Timbuk2
The key competitive dimensions for the Timbuk2 messenger bags are that they are high quality custom and classic bags and that they are produced locally in San Francisco which enables them to deliver the product overnight to the customer. The laptop bags are sourced from China however, they claim that the factories in Asia provide fantastic work environments, the highest quality goods possible which enable them to offer the customers the highest level of service possible. They claim, “we specify all of the materials and construction details to ensure they meet the superior quality standards our customers have come to expect”. It seems that they are trying to keep the priorities for the two bags the same: high quality and high level of service regardless of the fact that the laptop bags are made in China. They address the fact that they are made Asia and use it as though they are helping the customer by outsourcing to keep the prices affordable. They are maintaining their support of the local community while increasing their competitive global market. 2.
Assembly line in China:
Volume/rate of production
The hourly wage per worker is significantly lower in China than that in the US therefore, Timbuk2 can hire several dozen more employees to create the bags at a cheaper rate. The rate of production would probably be 4 or 5 times higher compared to San Francisco and the assembly line would be faster with more employees. b.
Required skill of the workers
Since there are more workers in the Chinese assembly lines, the workers would require fewer skills than those in the US. It is easier and efficient to hire workers with fewer skills and have them work on a smaller piece of the puzzle. In the US, it is more efficient to hire someone with more skills since they are paid significantly higher. c.
Level of automation
The new bags require a variety of expensive machines however since the labor in China is more affordable, it...
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