Competition therefore often takes place at the distributor level, as gaining access to retailers is critical. Even a company like ebags.com only carries a select handful of manufacturers. The implications for this are significant for Kidage. The chosen strategy of marketing just one bag is probably the wrong strategy. In order to meet the needs of major manufacturers, Kidage is competing against firms that offer a wide range of children's bags, of different types. For Kidage to gain access to retailers, it will need to match the range offered by major competitors like North Face and Firefly. In doing this, Kidage can gain access to important retail channels. Then, the company can put the benefits of each particular bag up against the price/benefits of whatever company's bags are competing in a given retail channel.

The Kidage bag has a number of distinctive features, and these make the product unique from most competitors' bags. This is an advantage that the company has, because the bags can serve a specific functional purpose. Hopefully these concepts have been tested and the consumers have responded well to them. The different and unique features are going to be a valuable point of competition that hopefully retails will recognize the value in. The company is going to need to target channels that sell the most bags, and attempt to position its bags in such a way that they will be offered alongside the companies...

Kidage needs to operate with its own advantages. Many firms in such industries must ensure that not only do they have a unique product offering, but that they are able to keep their costs down because there will inevitably be some element of cost competition, regardless of how many excellent features the company thinks it has included in the bags (Porter, 1980, p.210). It is critical that the company focus on its own business, in other words, because no single competitor is key to the success or failure of the firm, even though there will be intense competition in every retail channel.
Works Cited:

Alibaba.com. (2012). "Children's Book Bag." Alibaba.com. Retrieved April 2, 2012 from http://www.alibaba.com/showroom/children%2527s-book-bag.html

eBags.com. (2012). Kids' backpacks. Retrieved April 2, 2012 from http://www.ebags.com/category/kids-backpacks/20010555

Porter, M. (1980). Competitive Strategy. The Free Press: New York, NY.

Pottery Barn Kids: Children's Book Bag. (2012). Retrieved April 2, 2012 from http://www.potterybarnkids.com/shop/kids/backpacks-luggage/shop-all-backpacks/