Case Study Eldora Essay Example
Case Study Eldora Essay Example

Case Study Eldora Essay Example

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  • Pages: 4 (961 words)
  • Published: January 31, 2017
  • Type: Essay
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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 pro

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duction 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 i

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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; Eldora, should still consider a couple of other things. In the area of manufacturing, it should not be so stressful for the people of Eldora to accomplish success.

Eldora should keep up the good work of producing high quality frames and other products. In other words, let’s keep mister Sean Andrew pressing on building lighter and rigid frames. Furthermore, as mentioned before, the idea of locating a manufactory in Asia is going to provide a great amount of bikes made in a very low cost, which is going to provide enough money to pay off the shipping of already assembled bikes from Asia to the United States. Since, different parts are being made in Taiwan.

However, in the area of marketing Eldora should think twice if American’s marketing strategies would work in a culture such as the Asian. How so? We need to remember that at the end of the day, Eldora is going to be thinking and being challenge for and by a new customer. A customer having a completely different sense of needs and wants. A customer shaped and formed in a total different culture. Therefore, Eldora should consider studying first the other markets around. Observe and study what these other competitors are doing to reach the specific target audience.

In regards to the companies’ core competencies. It seems clear to determinate already that

a one of Eldora’s core competencies is what mister Andrew pressed extremely hard, “even lighter and more rigid frames. ” This unique core competency plus a reliable delivery time is what can make this company get stronger as in the United States as in Asia. Now, observing the different alternatives, it seems correct to say they all will work greatly for the already mentioned strategies.

The idea of trying first to capture the benefit of lower costs and the closeness of Boulder offices by locating them near Mexico seems a pretty reasonable strategy. In that way great amount of money would be saved. Opening a small office in China with people that know the culture already will be beneficial for the new strategy. Time will be crucial in this area; therefore, by having native speakers gathering information about the Chinese market, distribution, channels and why not will help to jump over those walls of language, and culture.

Establishing a joint venture? This is also a great opportunity. In this way the brand is going to be recognize in the major cities, which control the major economies, which it will increase the knowledge of potential associates. Forging alliance with an Asian company and establish a final assembly plant? Why not? Eldora should partner up with Asian companies. As I mentioned before, Taiwan is already helping Eldora out in making certain parts.

If Eldora partner up with certain Asian companies this will allow a better proximity to the major competitors and Eldora will not have to be fighting from American soil. This will allow Eldora to focus mainly in its new customers, or better

said “core competencies. ” All of these alternatives point us to our last alternative, which is the idea of creating an entire and owned replica of the Eldora campus in some Asian mecca. After supporting these previous alternatives and describing briefly how the company will best accomplish them it will be foolish to say that this is a wrong idea.

This will greatly benefit Eldora, and it will help to finally establish Eldora after taking those previous steps, those baby steps. I believe the only way on how Eldora should be able to accomplish such a great accomplishment, will be by completing the previous ones. I mean, after obtaining all of those steps, Eldora should be able to obtain a terrific customer service in Asia, which it will differentiate them from the rest giving them the fruitful growth in this emerging Asian market.

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