Tandem Industries is an American bicycle manufacturer and the creator of Rider 360, a high-end mountain bike designed specifically for extreme cross-country riding. After having performed successfully on its home turf, Tandem is planning on taking its product to Australia, a country well known for its interest in extreme sports. Some of Tandem’s senior executives are in favor of marketing the product—that is, with no design adaptations or adjustments. Experienced executives in the production division believe the product is already world-class and can be easily standardized across nations. Others in the company, especially those in the marketing division, argue differently. That is, they maintain that adapting some of the features of the Rider 360 to local consumers’ preferences and general Australian conditions would make the Rider 360 more appealing to Australia buyers, greatly improving the chances of making a big hit, and powering the way to success. Which of the following, if true, best supports the argument for making no changes to the design of the Rider 360, but rather marketing the version presently sold in the United States? A) Most sports goods manufacturers make few, if any, modifications to their product lines when entering international markets. B) The Australian market is currently only one-fourth the size of the U.S. market. C) Research shows that most Australians spend 60 percent of their leisure time playing sports or exercising. D) The company has a state-of-the-art research and development center. E) Australian terrain and riding conditions resemble cross-country riding conditions in the United States..

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 1.9A

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Tandem Industries is an American bicycle manufacturer and the creator of Rider 360, a high-end mountain bike designed specifically for extreme cross-country riding. After having performed successfully on its home turf, Tandem is planning on taking its product to Australia, a country well known for its interest in extreme sports.

Some of Tandem’s senior executives are in favor of marketing the product—that is, with no design adaptations or adjustments. Experienced executives in the production division believe the product is already world-class and can be easily standardized across nations.

Others in the company, especially those in the marketing division, argue differently. That is, they maintain that adapting some of the features of the Rider 360 to local consumers’ preferences and general Australian conditions would make the Rider 360 more appealing to Australia buyers, greatly improving the chances of making a big hit, and powering the way to success.

Which of the following, if true, best supports the argument for making no changes to the design of the Rider 360, but rather marketing the version presently sold in the United States?

A) Most sports goods manufacturers make few, if any, modifications to their product lines when entering international markets.

B) The Australian market is currently only one-fourth the size of the U.S. market.

C) Research shows that most Australians spend 60 percent of their leisure time playing sports or exercising.

D) The company has a state-of-the-art research and development center.

E) Australian terrain and riding conditions resemble cross-country riding conditions in the United States..

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