Tao of Timbuk2

Case: The Tao of Timbuk2

Question #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? Is its competitive priorities different for the new laptop bags sourced in China?

Competitive Dimension | Messenger Bag (USA) | Laptop Bag (China) |

Price | Higher | Lower |

Delivery | Fast (within 2 days for some orders) | Standard (Possibility of late shipments) |

“Other” (customization, size, color, etc) | High customization levels | High customization levels |

Manufacturing Costs | Higher due to skilled workers and quality materials | Low due to unskilled workers and cost of doing business in China |

Durability | Highly durable | Highly durable |

Sustainability | High-Bags are warrantied: Customers can buy replacement parts | High- Bags are warrantied; Customers can buy replacement parts |

Brand Philosophy | High customization creates emotional bond between customer and brand | High customization creates emotional bond between customer and brand |

The key competitive dimension that are driving the sales for Timbuk2’s messenger bags is product customization. The customer can customize the bag by selecting colors, pockets, size or other layout factors of the bag that specifically meets to demands and wishes of the customer. By allowing the customer to choose a variety of customization factors, Timbuk2 is creating a personal connection between the product and the consumer, which creates an emotional attachment to the brand and the product. Additionally, the bag is handmade with high quality material and is shipped per customizations to the customer in as quickly as two day; so not only are customers receiving a highly customizable bag, they are also receiving within a very short period of time. However, the competitive priorities for the new laptop bags that are sourced in China are different than the ones in San Francisco because of the above...