A: Eldora Company’s main strategic objective should be to gain access into the Asian market, due to the market for the same kind of bikes over there is doubling annually, while the market in the United States has remained stagnant. Eldora should also attempt to maintain their strength that they have locally, due to them being the top mountain bike manufacturer in the United States. They should also take advantage of the lower labor and distribution costs in Asia by setting up facilities in that part of the world as well. 2) Q: Given the strategic objectives, what functions of the company might be relocated in this effort as well?
A: The Eldora Company …show more content…
Cons: The labor is most likely less expensive in Asia.
If the company decides to penetrate the Asian market, and have the assembly in Mexico, the shipping costs would be significantly higher in Mexico than if they had the assembly in Asia. 2) Pros: The Company would become more educated on the Chinese market.
They would find distribution channels, local conditions and laws, as well as, potential joint venture partners.
Would provide great insight on how the company could effectively penetrate the Chinese market.
Cons: Hiring only one person to find out this information wouldn’t be as effective as if they would hire several people to do this job. 3) Pros: They would gain access to expertise without the need to hire more staff.
They would gain access to new technologies and patents that were developed by other companies.
They would possibly gain access to new markets, including increasing their range to international markets.
Cons: Eldora would need to cope with the new company’s management style, and culture, which could result in poor integration.
Poor tactical decisions could be made due to a misunderstanding between the two companies. 4) Pros: Would allow Eldora to team up with a company that is educated in the Chinese and Indian market, which would avoid the need for expensive marketing research of those markets.
Keeping the frame production at home would ensure the same
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