	The luggage industry is still in a transformative stage brought on by a number of factors such as the 9/11 attacks, increased travel costs, and changes in workforce demographics.  The demand for traditional, medium-to-large sized durable luggage pieces has declined steadily over recent years, with demand for smaller and more portable options rising.  Several big-name, established businesses still reign supreme in the luggage industry, but the shift in buyer preference has opened the door for new entrants to gain market share by focusing on areas in which the larger industry players are less-equipped to.
	Cost control is critical to success for luggage manufacturers, especially new entrants.  Established businesses in the industry have seen several years of rising profits due to the use of cheaper overseas labor (outsourcing).  New entrants will be at an almost instant cost disadvantage due to the initial lack of economies of scale and lack of access to cheaper labor markets.  Innovation is also a key driving force in the industry, as buyer preferences continue to shift towards smaller, more portable and lightweight luggage options that may not currently exist.
	The five competitive forces all weigh heavily in the strategic choices of luggage makers.  Rivalry among competing sellers has been and likely always will be intense.  Though gradually declining in popularity, traditional luggage formats are manufactured in similar styles by a number of producers, all of which will find it increasingly more important to keep as large a market share as possible in that declining market sector.  Established luggage makers will have to compete fiercely with one another to meet the shifting demands of buyers towards more lightweight and portable luggage, and earn as much of that market sector share as possible.
	Shifting buyer preference has made the threat of new entrants to the luggage industry a much more imminent threat.  The O-Fold is a prime example of bringing an innovative new product to the market that satisfies the current wants and needs of buyers.  Many potential products, like the O-Fold, have not yet even been invented.  Small businesses and entrepreneurs with new, innovative ideas will undoubtedly continue to bring these fresh ideas to the market and attempt to gain a strong foothold in the area of small, lightweight luggage.  As the demand for such luggage is growing, and sellers are able to charge a price premium due to the increasing demand, the attraction of this sector of the luggage industry is strong and will likely draw many new competitors with their own innovative products.  Richards and the O-Fold will have to compete with these competitors and will have to prove to potential customers why their product is superior.
	With cost control being a key success factor, competitive pressures stemming from suppliers warrant priority attention.  Smaller, newer players in the luggage industry are at an inherent disadvantage with suppliers versus larger luggage producers.  They have less bargaining power with suppliers due to their smaller supply needs and will find it more difficult to negotiate favorable purchase terms.  Competitive pressure from labor suppliers is also a significant factor.  Most established luggage makers make significant use of cheaper overseas labor, which smaller manufacturers have little or no access to.  Domestically, labor is less of an issue due to the lingering effects of the economic recession in the United States.  With many people still out of work, companies producing domestically will have more bargaining power with their domestic labor suppliers (potential workers) and can demand concessions (lower wages, less benefits, etc.).  However, if/when the economy gains strength and unemployment drops, luggage manufacturers will find domestic labor competition much more competitive, as they may be forced to give employees additional compensation to find and retain qualified laborers.
