Bleue Company specifically deals with production as well as customization of smart bags security by installing locking mechanism in items such as backpacks, purses, wallets or else handbags. This mechanism uses the proximity sensor to lock the smart bags. Although the corporation has a high potential to grow due to its innovations, it will have to face various problems in the long run during its operation (Lewis et al 168).
Company’s problem analysis
As an upcoming company, the primary challenge that may be faced by Blueu Company is market penetration as well as the creation of new geographical markets in various parts of the world. This is because training customers on how to operate and maintain the security mechanism of their smart bags will be costly and time-consuming. It is tough to convince and secure new clients because of the technology used in customizing smart bags. However, there is a need for security during traveling and most travelers will be happy if their bags are safe. This is the strength of Blueu Company and by making the mechanism simple to use, there will be high chances of increasing its market coverage (Platt et al).
Another problem is competition from other companies that deals with similar business such as Blue Smart Company. Since the company imports it products from China and Italy, its total production cost will be a bit higher when compared to that of its competitors. This will force Blueu Corporation to sell it product at a higher price (Platt et al). To overcome this, the company management must look for the opportunity to access its products locally and then improve the quality of the final products such as handbags, wallets as well as suitcases by adding value.
Conclusion
Analyzing company problem mostly entails SWOT analysis which has been applied in Blueu Company problem analysis although it has been narrowed to cover threat and strength only. Therefore by the Company penetrating new markets and compete positively, it will earn more revenue.
Work cited
Lewis, Tasha L., and Brittany Haas. "Managing an iconic old luxury brand in a new luxury economy: Hermès handbags in the US market." Global Fashion Brands: Style, Luxury & History 1.1 (2014): 167-178.
Platt, Jennie, Christian J. Seegmiller, and Corbin B. Church. "Handbags with interchangeable covers and methods for customizing handbags." U.S. Patent No. 8,684,054. 1 Apr. 2014.
