The Tao of Timbuk2

Hung Nguyen

Case: The Tao of Timbuk2

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 their competitive priorities different from the new laptop bags sourced in China?

For the custom messenger bag, the key competitive dimensions that are driving sales are quality and speed. Timbuk2 are very proud that their custom messenger bag are very durable. The process quality of Timbuk2’s customer messenger bags are very reliable and not prone to defects. And the design quality of Timbuk2’s custom messenger bags are custom-made to fit customers’ desires. The design quality of Timbuk2 give customers a sense of exclusivity in knowing that their bag may be the only kind in existence. The delivery speed of Timbuk2’s custom messenger bag to their customers is a critical competitive dimension. Base on the information giving, the order custom bag is tailored to the exact specifications of the customer and sent via overnight delivery directly to the customer in two days. Good quality and quick delivery is the best way to obtain customers’ loyalty. The

From my understanding, I believe that Timbuk2’s competitive priorities are the same for the new laptop bags as the custom messenger bags, with quality being their top competitive priority for the new laptop bags. But since the new laptop bags are made in China, the delivery speed would not be as quick as the custom messenger bags that are made in San Francisco. Like the custom messenger bags, the new laptop bags are still custom designed base on the specifications of the customer. Even though the new laptop bags are manufactured in China, the designed are still in San Francisco, where features and specifications that made Timbuk2 a competitive market. I can only presume that the new laptop bags are made with the same high quality as the custom messenger bags since Timbuk2 visits the China factory every four to eight weeks for inspections. Base on the information giving, Timbuk2 claims that demand for the custom messenger bags are still high and people are raving about the new laptop bags. One can only think that Timbuk2 competitive priorities for the new laptop bags are the same as the custom messenger bags, minus the delivery speed I assume.

1. Compare the assembly line in China to that in San Francisco along the following dimensions: a. Volume or rate of production b. Required skill of the workers c. Level of automation d. Amount of raw materials and finished goods inventory.

The assembly line in China are very different to that in San Francisco in all dimensions. In China, the assembly line are required continuous production since the products are made in a similar manner. The manufacture workers don’t get paid to sit around and wait for the order to come in like those in San Francisco. They are being paid to make finished goods and stored them in inventory. In San Francisco, the workers tailored to the exact specifications of the customer’s own custom design bags, which lead to the production of individual designs in limited quantities. Therefore, volume or rate of production is dependent on the orders placed by the customers. And since the workers in San Francisco tailored the custom messenger bags to the exact specifications of the customer, they required a specific skill sets. That same skill sets doesn’t required for China workers simply because the assembly line operate machine to produce a certain unique products in quantity. With level of automation, the assembly line in San Francisco is low because their works doesn’t require expensive machines to produce. Instead, the workers focuses on the custom messenger bags which do not depend much on automated systems. Level of automation will not work in San Francisco since each bag is made according to a given set of customer desire. But in China, the level of automation is high because the workers operated very expensive machines to produce particular product in mass production. The assembly line in China have a system of operating machines that reduced human intervention to a minimum. Lastly, the amount of raw materials are high in San Francisco because the workers need the raw materials to be available at all time to build the finished goods. Once the finished goods are done in San Francisco, the finished goods will be ship via overnight delivery directly to the customer. So there are no finished goods inventory in San Francisco. On the other side, the assembly line in China have low raw materials but high finished goods inventory simply because they has an increased capacity for production and the laptop requires more labor and assembly. And these requirements are met by the Chinese assembly line workers and machinery.