Case Study Making Business In Asia
?· Eldora Company (EDC) a leading U.S. bicycle maker.
?· Domestic manufacturing strategy: keeping its plant on the same campus as its corporate offices in Boulder, Colorado. It had contributed greatly to cooperating among various departments and ultimately to the company?s growth.
?· In 1992 EDC?s sales and earnings had hit record levels.
?· Now the Company produced almost 30% of the bicycles sold in the United States.
?· U.S. mass-market bicycle sales were growing by only 2% per year.
?· For years, the Company had concentrated its efforts on inexpensive bicycles.
?· Boulder Colorado, was a bicyclists Mecca. Eldora employees at all levels shared a genuine love of bicycling and eagerly pursued knowledge of the industry?s latest trends and styles.
?· All marketing staff, engineers, designers and manufacturing personnel worked on one campus, within a 10-minute walk of one another.
?· A Joint venture with Rinaldi, a high-end Italian bicycle manufacturer. EDC had begun importing Rinaldi bikes and Rinaldi had begun marketing EDC bikes in Europe.
MOVING TO CHINA
Reasons for do it.
?· The industry is reaching the saturation point in United States.
?· Two of the largest bike manufacturers in the world, located in rapidly growing Asian markets, enjoyed a significant labor and distribution cost advantage.
?· Of the 200 million bicycles made in the world last year,
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