Individual Application Case Study – Case Study Example
EBAGS CASE STUDY Ebags’ strategy model is via the official internet website www.Ebagss.com. This company is focused on reducing the fragmentation in its industry and attracting the customer closer to the manufacturer. This has been achieved by providing a myriad collection of their brand name products into the online store collection so that numerous people can order for their preferred choice. The products offered have covered the market sphere from the high ends, middle class to the low end. Furthermore, the online store front shortened the supply chain thus offering the opportunity for significant inventory cost savings. This strategy has given the customer a larger platform that they can use rather than queuing or travelling to the designated stores. Through this strategy, Ebags has been able to build a big customer – supplier relationship with over 300 suppliers delivering the goods to the customers (Weismantel, 1990). Ebags has been able to increase its Stock Keeping Units to more than 15,000. This has been an imperative factor that has contributed towards its success.
Ebags channelled the drop ship in inventory model to the manufacturers in a quest to bring the customer nearer to the manufactures. In this level, the inventory is under the supervision of the distributor or manufacturer. There are orders that are placed by customers from the website and are shipped on a daily basis. This strategy was aimed at abolishing the risk of inventory obsolescence. In retrospect to the traditional retail model that Ebags priorly used, it was giving a more instantaneous response. The inventory impediment was eliminated through the drop ship model thus reducing the expenses of holding the good below that offered by the traditional traders (Weismantel, 1990). This model has helped Ebags to offer virtual assortment of their products as opposed to the traditional method. Ebags created an attractive website storefront that is able to advertise and market its products based on demand and availability in order to guarantee customer satisfaction.
Ebags Case Study Page 507- 515.
Weismantel, G. E., & Kisling, J. W. (1990). Managing growth: Keys to success for expanding companies. Blue Ridge Summit, PA: Liberty House.