Present elements in business model
5
Competitive Environment
The current market of selling bags is already saturated but customization of bags is being done by few brands. Penetrating the market would be hard because you need to advertise your products so that people would know the brand do exist. Advertising would cost a lot of money in any type, as a startup business it would be hard to provide some cash for a very effective type of advertisements.
Competitive Advantage
The brand does offer a lot of customization so that it would be able to appeal customers to buy products from the brand. With the current market, people does not know much about customization of the bags because it is not advertised much. For LAB BAGS, the brand would change that perspective because the founders have provided a website that is easily accessed by the market to be able to create a bag that they are longing to have or something that they would not be able to find in a market.
Market Strategy
For the brand to be able to grow, the varieties of the bags should be expanded like offering customers an option to customize athletic bags and many other more. The startup of the business is to buy finalized bags from a 3rd party but if there is really a potential then creating their own bags would be an option. Another expansion would be to have its own physical store. Having a physical store would cost a lot of money because you have to pay so much for fees but if they brand really gets popular then having an own store is a good option.
Organizational Department
Creating the first batch of the bags with customization would be hard since there would be no knowledge of how this is done effectively, but as time goes on new ways would be discovered on how to be effective on finishing the jobs.