Case Study Eldora

Natanael Moreno
Operations Management
Professor: Richard Young
September 12th, 2012

Eldora

According to this case study, Eldora was considered a U.S. leading bicycle maker. One of the strategies that helped to this success was the fact that Eldora was a “home made” manufacturing. What this mean is that Eldora kept its productions centers in the same campus as its corporate offices; which were located in Boulder, Colorado. This “home made” strategy helped to the ultimately goal and of course growth of the company. Moreover, this caused improvements among the different sections of the company as well.
This success was so efficient that Eldora’s sales and earnings had wonderful record levels, which made its operations vice president Sean Andrews believed that the strengths of the company was tied with their “reverse engineering” as well as its logistical and production capabilities. In other words Eldora’s products were of high quality. What so ever, the problem began when other companies started making great money by being able to produce bike products, and bikes in a very cheap cost. The products were about the same quality, but the cost of making the bicycles were in a greatly low cost in contrast to Eldora’s.
This is why I totally believe that the strategic objective that Eldora should serve is to move their productions departments to where the labor and production is greatly low. There are some great opportunities on taking this strategic objective, such as: * Eldora is going to be able to find a high and sustainable growth in the market with a high market to share. * Eldora is going to be able to make presence in the World’s largest growing economies. * Eldora is going to be able to form strategic alliance with the local companies.
What functions of the company might be relocated in this expansion effort?
Seeing that it will be greatly beneficial for Eldora to send one manufacturing and of course a marketing division over to Asia;