Nordmark Case Summary

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Mr. Jon Nordmark, who is president and Chief Executive Officer, for eBags convinced four other people who are named Peter, Eliot Cobb, Frank Steed, and Andy Young, to join him to build what they call online luggage and travel products store. They saw the Internet as an opportunity to take their experience and to expand into a major retailer. The cost for each member was fifty thousand dollars, and they all agreed to work for free until the company starting making money. The company was struggling forcing Nordmark to take out cash advances on his credit cards and had to borrow money from his family members to include getting a second mortgage on his home to keep the company from closing down, although they did reach a point to where they were…show more content…
When Benchmark invested on eBags other venture capitalists saw a company that can grow and expand so they began to contribute with their investments which total 6.8 million. Finally in March of 1999 was officially launched. As time went on more venture capital money followed which total over 30 million by November 1999. With the money coming in Nordmark wanted to make sure his partners focused on driving sales growth and boosting more brand offers. ebags sales growth grew to 98% per month, and they broadened their product offering from six to fifty six brands. By year 2001 eBags was named website of the year by Catalog Age. They did receive numerous awards to follow. eBags became the largest online providers of bags and accessories in 2004, they provide over 200 brands and 8,000 products. They sold over 2.5 million bags and continue to be a profitable dot-com company to survive and continue to grow. When we talk about the eBags case study and the functional areas the company used is mentioned which are the Marketing, Purchasing, Logistics, and Finance and Accounting, Human Resource, and Information…show more content…
They had to provide distribute channels and pricing, to include new product introduction for luggage, footwear, (Which to be discuss later) and other products. eBags develop strong relationship with four major manufactures. When it came to Purchasing, Managers had the power to be creative and with the prices and supply contacts. What they did was shorten the supply chains which save cost on inventory, and it brought the customer closer to the manufacturer. eBag use the drop-ship inventory model to the manufacturer by doing this inventory was managed by the manufacturer or distributor. eBags would place the orders to the vendors who then would shipped the product to the customer directly. Which became their Logistics styles, Mangers had to be creative with transportation who or how the material was handled, packaged, or what warehouse was being used and who responsible for shipping the product. With the drop-ship model it eliminated the need for inventory and lowers the cost than those of traditional retailers, It also allowed eBags to offer a much wider virtual assortment because of no restraints for floor space and they had no need to expand for a floor space. So when it came to the finance part Manager had to have finance officers who knows about or provide availability of capital Venture, have knowledge or create a conversion process or net present value, cash flow,

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