Boblbee(D): THE URBAN BACKPACK Harvard Case Solution & Analysis

Boblbee(D): THE URBAN BACKPACK Case Solution

INTRODUCTION

GAAB was established as a prototype in the year 1998 by two friends with a small plat-form of Swedish sports retail chain. Growth took place when the product was launched in international trade fair for sports and fashion (ISPO). The appearance of the product was much appreciated in that event. By using such a medium of product introduction, many distributors were attracted towards the company and the company got the list of interested 84 distributors as the product development was considered quite satisfactory. That event bought remarkable positive changes in the business cycle by bringing the business to the edge of success.

However, some questions were emerged which showed that the company had to choose the appropriate distributions channels, the production process, and the target market. This indicated that the management had to do work on it in order to lead the business towards success.

 The business plan mainly reflects the solution which has been faced by the business partner, which is why the production process works on the customers' proposition hand by hand. Established customers’ brands used to sell the product at first, which indicates the real product clientele had not been in large amount. Numerous competitors operated in the market such as delsey, eagle creek, tumi, travel pro, samsonite, ortovox, timbuk2, Nike, Oakley, Salomon, arcteryx, pelican and etc., which made the competition tough due to the cost and customer selection.

PROBLEM STATEMENT:

The company is newly established with less capital, needs to improve its pricing, as well as the marketing strategies that would help to capture more customers by providing quality products, which would also satisfy the customers’ needs.

ENTREPRENEURIAL OPPORTUNITY:

 It is expected that there are many opportunities available for the company in order to achieve growth and market share. Moreover, only few competitors were found in the market, and this is also an opportunity for the newly started business. The company is following the product differentiation strategy and has been pursuing the differentiation strategy in the product design, which has provided the company with significant advantage since it is is operating in a very competitive environment and mostly competitors are also following the same strategy. The product has been designed and provided to the customer by using the experience of one of the business partners, therefore the company acquired patent PCT (Patent collaboration treaty) for its product. U.S.A acquired the large portion of the market with a large share of 50%. It is beneficial for the company to target those markets which have not yet been explored, which is why the company chose other regions to introduce the products at first as it would be able to get the first mover advantage as well as it would also help to achieve business growth according to the future business objectives.

POTENTIAL INVESTMENT OPPORTUNITY

Investment is one of the important tools for any business and making investment decisions is considered as the most critical part of the management regarding the decision as the future growth of the companies depends upon the investment decisions, and the right investment decisions could provide certain financial benefits to the company and the management as well. Initially, the capital invested by business partners did not seem to be enough which is why short-term loans have been taken to gauge the business process. Even though bank loans are increasing on a yearly basis, therefore it indicates that more money is required every year in the business as it is in growing which,has ultimately increase the demand of additional financing needs. The cash account of the company's financial statement showed an increasing figure each year therefore,cash should be used in a productive way as additional cash in the company's account could be used to enter other markets, which are still un targeted. In addition to this, it is expected that there is a significant potential in these markets......................

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