Freigtag Company Essay Example | Topics and Well Written Essays - 1250 words

Freigtag Company - Essay ExampleThe caller prides its products in high regard, which is mirrored in the price of the bags. The company targets the high-end market place, but it has not stopped the market from expenditure money on the pricy bags. However, the nature of the products is designed as long bags, which is incorporated in the pricing. The company bases their pricing on the factor that the purchase of a bag forget imply that the customer will not have to buy another bag for a long time. The durability of the bags is attributed to the resources used in the product vexment (Kotter, 2002). The organization uses old truck tarpaulins, car seat belts, and the inner tubes of bicycle tires to develop their expensive bags. The tools used are ideal for the company because they are cheap material since they are on wretched demand and they can be used in developing the bags, which are durable. The design of the bags is found on the bag design for the bike couriers, which they use for making deliveries. The design is suited to the general market because it has a casual look, and the bag can be used for various occasions, as well as in practical sense. The design is based on attracting keen observers of style and design. Along with the design, the bags are proven durable, waterproof, repairable, easy to use, and practical. The designs are unique and each bag is hand-made, making each bag personally orient for its buyer (Richard, 2001). Strategy The strategy implemented by FREITAG is focused on using cost-cutting measures to increase or maximize profits. From the inception of the company, Marcus and Daniel did not borrow money, which was a main strategy of reducing any cost of the company that may affect the productivity in the long run. Even with the aim of creating FREITAG into an international company, the brothers focused on using their funds purchase material that will increase efficiency in the sures production strategies (Kleiman, 2010). The plan has served the brothers well over the years, it has fostered the development, and success of the organization, and they have managed to succeed in play the company into an international company. The prime factors that have influenced the companys strategy are three zippy factors quality, sustainability, and functionality. The three factors are integrated in the bag design as a measure of ensuring the besotteds success in the market. The brothers also ensured that the bags would be special, tough, and useful (Mitcham, 2005). It pushed the firm into using strong and durable material in the production of the bags, but still using materials that would keep the firms be to a minimum. It is the reason why the organization will use recycled materials, which include pieces of airbags to make labels, and Velcro to draw quality bags at a low cost of production (COP). The organization focuses on in-house funding (revenue) as the means of developing the companys brand and expansion strategies . The companys main hollow out is centered in Europe, where it employs 88 employees. 76 are located in it is headquarter in Zurich, four fly the coop in Hamburg, and Berlin and Cologne have three employees each. The company may have over 350 designated selling points ecumenic however, they are not employed directly by the company, which is a measure that ensures the firm maintains a low COP (Gomez, 2008).