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Eldora

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Submitted By CrazyNeo
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Eldora Case Study 1) Q: What strategic objectives should this venture serve?
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 should place a manufacturing plant in Asia, due to the lower labor and production costs. In the same area, they should place their marketing department for the Asian market. It is important to move a marketing division over to the Asian market, due to American marketing strategies not necessarily working in Asia. Having a local plant would also help reduce the market risks, especially the trade barriers and exchange rates. This would also help the company interact with its emerging market. The Eldora Company should still keep their product development function in America, in order to maintain their signature high quality light frames. By keeping this function in America, the company can also continue perfecting skills in reverse engineering.
Q: What are the company’s core competencies?
A: The Eldora Company’s main core competencies are their fabrication of lightweight and rigid frames as well as their outstanding customer service. It has taken many years and much effort for the company to develop these core competencies. They have also developed a lean system of production and logistics, which has resulted in their lightweight

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