The Timbuk2's Business Strategy

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Timbuk2 was started in 1989 by Rob Honeycutt, a bike messenger whose goal was to make his delivery job easier. By 1996, they had established themselves as a company to watch when it came to customized messenger bags. Timbuk2 introduced lean manufacturing in order to provide customized products, while increasing the quality of their products and reducing waste. Timbuk2 specializes in custom made bags that can be designed by customers.

Introduction
In 2002, Timbuk2 decided to relocate their operations and supply chain to China. Their decision to relocate to China was a business strategy designed to satisfy the needs of the customers and that of an expanding business. This business strategy would have also allowed Timbuk2 to meet the needs of …show more content…

Timbuk2’s sales continue to increase as a result of their unique business concept. They have also managed to keep a strong database of customers. Timbuk2 pride itself in having bags that can outlast careers, pets or even relationships. Since their debut in 1989, they have refined their production to increase the quality of their product and to be more efficient. Quality, duration and price of their custom-made bags are core values that make up Timbuk2’s company. Therefore, in order to maintain these values and efficiency, Timbuk2 decided to move its operations to China. This is especially important due to an increase in their sales.
Effectiveness. Timbuk2’s current production was made up of 25 workers based in San Francisco. Over the years, their sales continued to increase and as a result, San Francisco’s production line was not as effective in producing quality products at an affordable price and in a timely manner. Relocating production to China provide a much larger production area, enabling the company to increase its effectiveness. Timbuk2 recognized that their effectiveness in producing their bags will have a positive effect on the company’s sales; it will also increase brand loyalty among the …show more content…

Outsourcing in the long-run might negatively impact employees. Timbuk2 may decide to move the company as a whole to China is order to reduce their operational cost. This can be a possibility as a result of technology change and the ever increasing cost of living. Another important area Timbuk2 must pay attention to is their sales and customer base. If their sales decrease, is it due to customer dissatisfaction due to price, quality or diminished interest in the product. Timbuk2 can control the quality of the product by regularly doing product and process

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