Business Studies Crumpler Case Study

Role of Operations Management
  * The aim of Crumpler is to clearly differentiate the business’s products from its competitors rather than using a cost leadership strategy.
  * Differentiation through operations has been achieved through:
      * Better quality product
      * Vast variety of products in its range to suit individual customers
      * More features and versatile applications
      * Incorporation of new technology
      * Clever design.
  * Operations must supply a product that has the features and quality consumer’s demands as well as reliably distributing this product to the market.
Influences on Crumpler Operations
  * Crumpler Australia’s export sales are currently estimated at around $6 million, approximately 50% of sales overall.
  * Retail stores are in:
      * North America
      * Europe
      * Asia Pacific Region
  * Globalisation has also meant that Crumpler can outsource its manufacturing and now has a global supply chain. Costs of operations have significantly fallen as overseas manufacturers have access to cheaper material and labour outputs.
  * There are several economic influences on the business. These include the rising cost of oil, general economic conditions across North America and Asia, and the rising cost of labour across Asia.
  * Originally all production was done by hand – now the business has incorporated CAD and CAM. Technology became a crucial element of the business as competition increased.
  * B2B communication using email allows Crumpler headquarters to keep in touch with its manufacturing contacts in Asia, as well as retailers world-wide.
Design and Manufacturing Processes
  * All products are designed in-house in Melbourne, from concept through to prototype. These are then sent on to manufacturers who then send back a quota.
  * Crumpler feels that finding manufacturing partners who understand the brand is an important part of the business.
  * Crumpler...