The Eldora Company [EDC] is quite a successful company based in the US, manufacturing bicycles in the mid-range category for the US. They currently produce 30% of the bicycles in the US, and the growth of sales in the US has stopped, with annual growth rate around 2% only. Thus they are looking for expanding into the Asian markets of China, India and Japan.

Analysis under SWOT model:

STRENGTHS:

Local Manufacturing Plant in the US, helps in close co-ordination and the ability to stay ahead of the competition.

The plant was located in Boulder, Colorado where there were a lot of cyclists, and thus their company had a happy and productive workforce.

They could keep ahead of the curve by relations with speciality bike shops and forays into the upmarket category.

They have very good infrastructure with most of the processes automated. High quality products.

WEAKNESSES:

Infrastructure at the Home Plant is not being properly utilized because of power cuts and so on.

Plant located in the US itself, with high automation. Thus very low experience with labour based forces.

No brand presence in China, and no information about the market there.

OPPOTURNITIES:

A potential new market with a high and sustainable growth rate with potential for a high market share.

Brand Presence in the World’s Largest Growing Economies. Strategic Alliance with a local company

THREATS:

Competitors have knowledge of using labour over infrastructure, and they have well established operations in China.

Very low infrastructure in China, so they will not be able to capitalize on their strength of using infrastructure over labour.

China is a communist country so they will have to face new policies in the country. Mode of operation, etc .