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Operation Case 2

The document discusses Timbuk2's competitive dimensions for its custom messenger bags and new laptop bags sourced from China. For custom bags, key dimensions driving sales are the emotional attachment customers feel, the bags being indestructible, and the ability to customize. For laptop bags, Timbuk2 focuses more on features, quality, and value. The document also compares Timbuk2's assembly lines in China and San Francisco, noting higher production volume and automation in China. Diagrams show the supply chains for each location and costs for Timbuk2 to consider beyond manufacturing when sourcing include transportation, warehousing, labor, overhead, and logistics.

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Maulesh Patel
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411 views3 pages

Operation Case 2

The document discusses Timbuk2's competitive dimensions for its custom messenger bags and new laptop bags sourced from China. For custom bags, key dimensions driving sales are the emotional attachment customers feel, the bags being indestructible, and the ability to customize. For laptop bags, Timbuk2 focuses more on features, quality, and value. The document also compares Timbuk2's assembly lines in China and San Francisco, noting higher production volume and automation in China. Diagrams show the supply chains for each location and costs for Timbuk2 to consider beyond manufacturing when sourcing include transportation, warehousing, labor, overhead, and logistics.

Uploaded by

Maulesh Patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The Tao of Timbuk2 Case Study

Q. 1 Consider the two categories of products that Timbuk2 makes and sells. For the
custom messenger bag, what are the key competitive dimensions that are driving sales?
Are its competitive priorities different for the new laptop bags sourced in China?
Answer 1: -
For the custom messenger bag that Timbuk2 sells have the following key competitive
dimensions that are driving sales:-
 It is a dependable and everyday life companion for the customer and a bond is created
between the customer and the bag.
 It also has emotional attachment with the customer and has a good perceived value in
the minds of the customer.
 Also, the customer considers it indestructible and that is what makes it superior from
its competitors.
 The customer is allowed to customize the bag through a wide range of design and size
and the quick delivery of bag within two days of placing order online that saves time
of a customer.
 For the new laptop bags sourced in China the company focuses on features, quality
and value at reasonable prices rather than showing it as a bond with customer and
also, they found a factory in China to cut down on their labor cost.
Q. 2 Compare the assembly line in China to that in San Francisco along the following
dimensions: (1) volume or rate of production, (2) required skill of the workers, (3) level of
automation, and (4) amount of raw materials and finished goods inventory.
Answer 2: -

Dimensions China assembly line San Francisco Assembly line


Volume or rate of High rate of production Depends on customer
production demand
Required skill of the Very high High
workers
Level of Automation High level of automation No automation required
required
Amount of Raw materials As the rate of production is Raw materials required
high there is need of a lot of would be according to the
raw materials demand of customers
Finished goods inventory High level of finished goods No inventory is required as
inventory the product is delivered
overnight

Q. 3 Draw two diagrams, one depicting the supply chain for those products sourced in
China and the other depicting the bags produced in San Francisco. Show all the major
steps, including raw material, manufacturing, finished goods, distribution inventory, and
transportation. Other than manufacturing cost, what other costs should Timbuk2 consider
when making the sourcing decision?
Answer 3: -
Supply chain for bags produced in San Francisco is as follows: -

Raw materials Transportation

Supply Chain for those products sourced in China is as follows: -

Head Office at San Francisco

Design and Quality Assurance

Transportation

Raw materials

Cost to be considered by Timbuk2 while considering sourcing decision are as follows:-


 Transportation cost
 Warehousing cost
 Labor cost
 Overhead cost
 Logistics Cost
 Cost associated with government policies and tax structure of China

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