EDC plant location puzzle
...st its production run with minimal disruption. Another reason is that Boulder, Colorado, was a bicyclists’ mecca. Eldora employees share a genuine love of bicycling and eagerly pushed knowledge of the industry’s latest trends and styles. And EDC never had a shortage of people willing to test out the latest prototypes. Eldora had also benefited from its foray to the high-end market 12 years earlier. EDC then entered into a joint venture with Rinaldi, a high-end Italian bicycle manufacturer, at the time specialized in racing models. EDC had begun importing Rinaldi Bikes into the U.S. market, and Rinaldi had begun marketing EDC bikes in Europe. 20% of EDC’s sales were now outside the United States (primarily Europe and Canada) through this and other arrangements. The relationships with Rinaldi and the specialty bike shops also helped keep EDC management aware of the latest industry trends over the years. While Ann examined another rival’s brochure, she noticed that EDC engineers were clearly ahead of the curve. For years, the company had concentrated its efforts on inexpensive bicycles, retailing through mass merchandisers for between $100 and $200. EDC’s prices were slightly higher than other low-end competitors’. Retailers were willing to pay this premium because EDC had been able to offer many state-of-the-art styles and, very ...