What are some of the factors that enabled to Jen Rubio and Stephanie Korey to make good decisions when they established their luggage company, Away?
To determine:
Important factors that enabled the founders of the USA based Luggage Company to make good decisions at the time of starting their company.
Introduction:
Founders of the luggage company Mr. JR and Miss SK took several important decisions before starting their luggage company A. That decision came after the luggage of one of the founding members broke up on a trip. On a trip, one of the founding members found that all the luggage options were either cheap but of low quality or high quality but very expensive. There were no midrange options.
Explanation of Solution
Members of the company A found that the reason behind the high price of good quality luggage was it distributed and sold, through selected shops and departmental store. Hence, they decide to sell their product directly to the customers in cheap or midrange price.
Members of the luggage company A had the prior knowledge and experience of working in an e-commerce company, which helped them to select the best choice. Among the two founders, one had experience in branding and marketing, whereas another one had experience in operations and supply chain management, so they both were able to bring expertise in different aspect of the business.
The big decision that the founding members had to make in the process of establishing their business was to determine an initial design for the product. This decision required proper planning and good market research to understand the demand of the consumers. In a survey, they took customers views and asked the pros and cons oftheir existing products. Members of Company A gavethe contract to a team who helpedthem todevelop the first prototype of their product. Research and development finally led to the design of good and attractive lightweight products.
Founders found that their products will be made up of a Polycarbonate shell, hence, they realized that manufacturing their product in the USA, is not a good option, so they moved towards the Asian market, which is a large market of Polycarbonate shell products. They personally visited each manufacturing unit, which they shortlisted because their belief was the company which isbetter onpaperdidn't always best when visitedpersonally.
They also gave the option of advance booking because they know that luggage was not going to be available in the peak season. They interviewed many peopleand asked about their travel experience and created a book of travel memories. This book was not only interesting, but it also made people aware of the luggage company. The reason behind to run a successful business is that they have been made all the decision wisely. They used their expertise, experience, knowledge, and lots of research before making decisions.
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