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plant location puzzle

Q1. What is the competitive environment facing EDC? • U.S. market • The U.S. market for bicycles is growing at only 2 percent per year, The company’s market share 30% • Us industry is already reaching a saturation point & is overcrowded with players • Most of the large players have shifted their base overseas to take advantage of lower labour costs • Outside U.S. • There are also two main low cost competitors (in Taiwan and China) who are already exporting substantial shares of their output. • May possibly open up new factories in the U.S. • The Asian market size is nearly doubling every year. • About 20% of EDC’S sales were now made outside us Q2. What are EDC’s strengths in manufacturing? • Mainly, it’s their ability

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