Your SlideShare is downloading. ×
Ebags
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Ebags

2,141
views

Published on

MGMT3030: Group Presentation

MGMT3030: Group Presentation


0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,141
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
46
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Presented by: Rachel Romano Kathleen Barbosa Lydia Cooper Jasmine Shavers Monika Kerby
  • 2. The Organization Jon Nordmark President and CEO, eBags Mike Frazzini VP of Technology and Operations, eBags Peter Cobb VP of Global Merchandising, Customer Acquisition and Awareness, eBags
  • 3. eBags.com Mission Statement To be the world's most recommended retailer of bags and related accessories by delivering a trustworthy and innovative customer experience while being a cool place to work, and earning a superior profit.
    • Hassle-Free Returns Policy
    • 60 days from receipt of shipment
    • Prepaid Return Labels
    • Price Guarantee
    • Refund difference of price within 10 days
  • 4. History
    • Early 19 th century luggage
    • Expensive, hand-crafted, difficult to create
    • Leather and wood
    • World War II: Rip-stop nylon, fiberglass, aluminum, plastics and simulated fabrics
    • Durable, lighter, crafted by machine
  • 5. History
    • 1980s: Status symbol
    • Match status, wealth and fashion taste
    • Coach, Louis Vitton, and other designers
  • 6. Fragmentation Fashion Designers Coach, Vera Bradley Luggage companies Samsonite, American Tourister Prices $20 to $1500 Styles Suitcases Handbags Briefcases Messenger bags Carry-on’s Wallets Clutches Backpacks eBags brings all of these options together to give their customers one stop shopping for all of their luggage and bag needs.
  • 7. Product Choices Two major types of products offered: 1. Brand name merchandise from leading retailers 2. The companies own line of eBags products Vera Bradley Rolling Trolley eBags rolling trolley
    • Two separate types of supply chains
      • Drop-ship model.
      • Traditional speculative inventory model
  • 8. Drop-Ship Model Customer places order on eBags.com -> eBags electronically transmits the order to the vendor -> Vendor ships order to the customer directly, using the eBags shipping account -> eBags pulls tracking information and sends to customer in confirmation email -> Vendor invoices eBags for the product -> Ebags issues a payment to the vendor ■ Scan in exhibit 2 on page 509 and include here.
  • 9. Speculative Inventory Product comes from Asian manufacturers who sends the bags to be stored in Texas warehouse -> Order placed gets forwarded to the warehouse -> Warehouse picks and ships the order to the customer ■
  • 10. Two Supply Chains Drop-Ship Model (85% of orders)
    • Pros:
    • No cost to house inventory (rent, insurance, etc.)
    • Vendors get increased customer base and brand awareness
    • Cons:
    • Must have good relationship with vendors
    • Harder to problem solve customer service issues between eBags website AND vendor
    Speculative Inventory Model (15% of orders)
    • Pros:
    • Higher percentage of profits goes directly to eBags
    • Can capitalize on cost conscious customer base
    • Cons:
    • Must pay for the warehouse in Texas
    • Are vulnerable to inventory obsolescence
  • 11. Footwear “ All too often, people trying to start any business spread themselves too thin by going in too many different directions. When you do that, you lose your expertise in the area that inspired your business in the first place. We learned that lesson early.” Peter Cobb, Ebags co-founder
  • 12. Competitive Advantage
    • Shoedini.com
    • Highly competitive
    • Decrease in importance in retail channel
    • Focus on price sensitive consumers
    • Take advantage of price sensitive e-commerce consumer
  • 13. Record Sales Fiscal year ending June 30, 2010 Estimated Annual Sales $500,000 to $1 million Sales up 13% Leading sales of messenger bag and luggage categories 26% and 23% Brands showing strong growth: B. Makowsky, Timbuk2 Samsonite Baggallini. Fiscal year ending June 30, 2010 Estimated Annual Sales $500,000 to $1 million Sales up 13% Leading sales of messenger bag and luggage categories 26% and 23% Brands showing strong growth: B. Makowsky, Timbuk2 Samsonite Baggallini.
  • 14. Challenges
    • Consumer behavior
    • Need to be tried on by consumer
    • Buying behavior suggests consumers purchase multiple pairs of shoes for right fit.
    • Increased product return rate
    • Marketing strategy
    • Increase consumer awareness that footwear can be purchased on the website.
    • Agreement with non-retail websites to promote eBags on their websites.
    • Affiliates to receive commission for every sale that resulted in navigation through affiliate’s website.
    Challenges of 6PM.com:
  • 15. Supply Chain Management Business Model Challenges Language barriers Shipping requirements Brand awareness Web page administration Relationship between vendors and online retailers Must satisfy drop-ship method Challenges Managing at Distribution Level Functionality versus Style/Value Communication
  • 16. European Expansion
    • From a business perspective:
    • What decisions should Jon Nordmark make regarding the European expansion and the foot wear markets?
    • Expand into the European market
    • Footwear will take time
    • High internet usage and percentage of online shopping:
    • Profit
    • International business
  • 17. Footwear Expansion
    • Not a good move just yet business
    • Need time to develop into shoe market
    • Feasible with strategy
    Expansion, Europe, eBags: Will be good profit
  • 18. Presented by: Rachel Romano Kathleen Barbosa Lydia Cooper Jasmine Shavers Monika Kerby