Since the market for mountain bikes is decreasing every year in the U.S. and increasing in Asia I think it only makes sense to move the business overseas. Some strategic objectives Eldora should create for themselves could be: create a timeline of when they plan of having their business in Asia, when they can get a facility bought or built, how they will conduct some form of marketing research to see how to and whom to launch their product towards.
Since the bike derailleurs and freewheels are already coming from Taiwan I think it would make sense to have a manufacturing warehouse there to reduce labor costs and shipping costs for unfinished products and then also with finished products to the Asian market. I believe the marketing and product and development departments of Eldora can stay put in Boulder, CO because that can really be done anywhere. However with the cost of shipping products in and out, the cheapest and most cost effective way would be to outsource it.
Some of Eldora’s core competencies are their ability to reverse engineer popular bikes for mass production, their customer service, their high-end line of bikes, and even their prices could be considered a core competency. 3.
Pros: Lower labor cost, proximity to Boulder
Cons: Still not fully in the Asian market
Pros: Starting to penetrate the Asian Market, learning the ins and outs of the area
Cons: No production has started there yet, long ways from Boulder Alternative #3
Pros: Splitting costs in half, half the liability, don’t have to worry about manufacturing or distribution
Cons: Splitting potential profits in half
Pros: Half the costs, half the liability, keeping high end production close to home-loyalty, have knowledgeable partners aware of how to penetrate those foreign markets
Cons: Half the profits, keeping high end production close to home- labor costs...
Please join StudyMode to read the full document