Eldora Case study
The Eldora Company (EDC) is a successful company based in US, manufacturing bikes in mid range category and now producing around 30 % of the bikes in the US. Unfortunately the growth of the US marked has been only two per cent every year. While the Asian markets are growing at a fast pace and doubling every year. This trend in the market place and the change in the environment conditions has forced the company to reevaluate their strategies and objectives for the future. With the high growth of Asian markets other larger competitor companies have moved manufacturing to Asia to take advantages of lower labor costs and the distribution costs.
Eldora’s Strategic Objectives:
Eldora’s strategic objective is to gain entry into the emerging bike market in Asia where the growth is doubling every year. The company wants to lower its costs, while it maintains its core competencies that lay on its reverse engineering abilities as well as its logistical and production capabilities. Core competencies are what a company does best, giving them a competitive advantage over their competition. Eldora’s core competencies are their fabrication of lightweight and rigid frames and their good customer service. Over time they have made a lot of efforts to develop a system of production and logistics, which results in lightweight frames and fast and reliable delivery times. In order to keep these core competencies they have to make some strategic decisions, and decide what functions within the company would benefit from moving to Asia. They have all their manufacturing, marketing, and product development in one site, Boulder Colorado. The closeness of all these major functions of the company has provided them with quick feedback in any of the design changes, and also the flexible manufacturing system, and quick distribution has given them advantages over the other competitors. Now they must decide which one of this functions they perform...