Eldora Case Study

1316 WordsOct 28, 20126 Pages
Kledian Banushi 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…show more content…
3) Establishing a joint venture in which Eldora would provide the product and the process knowledge and the joint venture would manage the manufacturing and distribution. This alternative will be very efficient in bringing their product to the market place very easy and fast because the venture has already good establishment of the distribution and logistics in the market. Also on the other hand it will make the company to still stay focused in producing very high quality product on their primary location and using their process to make reliable product using their reverse engineering. This would help them to stay the best at what they do well, but they still will have high production costs. But being on a joint venture will not give them the opportunity to exclusively have full access to the market. They have to rely on the partner’s ability to distribute their product at the right time right place and right quantity. 4) Forging an alliance with an Asian company and establish a final assembly plant. Keep frame production of high tech ends home and locate the assembly plant near the strongest competition, and count on the joint venture partners for the distribution network. This is a good alternative, because they will outsource the assembly part of their production process which will lower their costs but in the same time they still can produce their high

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