eBag
Product-Process Strategy for Europe
European consumers have shown mixed signals concerning their choice of bags. There those who go for taste and those who go for functionality. Therefore, eBag should develop products that capture both interests. eBag should come up with products that will capture the interest of the market in terms of functionality and taste as well. eBag should also consider segmenting the European market and targeting each market with products that suit their needs.
For example, eBag should focus bags that respond to the functionality requirements to the German market while focusing bags that have emphasis on taste to the French market. In terms of process, eBag should maintain the model used in the United States. The model has worked in the United States because there many internet users and the population of those conducting business through ecommerce is high. The population of internet users in European market is even higher than that of the United States. This means that the model will gain popularity easily.
eBag should rely on forming a strong network of vendors as it distribution channel while maintaining their visibility in the European market through its online presence. Delivery of products to the European market should be based on demand to avoid high warehouse cost and keep prices for its products as competitive as possible. The products should be moved directly from the company to the consumers with the company meeting the shipping cost.
eBags Current Product Flow Process
The current product flow is such that products are moved from the company warehouse and directly to the consumers. Customers select the desired product online and make a purchase through online methods. Client can search for product based on the type, brand or price. The product is then shipped to the customer. eBag has made use of a single primary carrier, the United Postal Services. The process of shipping the products directly to the consumers avoids the high costs of storage. eBag has also established a return policy that enable customers who are not satisfied with the products they have received to return them the company.
Best Product Flow Process for the Footwear Industry
The market for the footwear industry is seasonal, highly fragmented and the products are also relative cheap compared to bags. This makes the manufacturer-consumer distribution channel using the shipping system at the cost of the manufacturer will not be viable. The best product process flow for this industry is to provide a one stop shop for footwear products near the consumers. This is product process flow will be more economical for the footwear products which are low priced and seasonal. The one stop shop will also carter for the highly fragmented market as the different types of customers will get products at these centers.
Unlike bags shoes also need to be tried on before the consumer makes the final decisions. Availability of the physical center where the customers can try on the shoes and walk aware satisfied will be more economical than having a system where the shoes are sent to the clients and turned back until the client gets the right size or quality. The online system indicated that customers could buy many different types and size of shoes online with the intentions of sending back those that do not fit expectations or requirements.
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