TREK BICYCLES Case Questions

TREK BICYCLES: JUST A NAME OR A SUMMATION OF VALUES?

Key Objectives:

• Gain insight into an organization’s international strategy and understand how the business environment influences the firm’s decision about mode of entry in operations in an international market.
• Understand how organizations evolve with respect to their mode of operations .
• Appreciate the different corporate strategies that organizations use at the international level to operate, coordinate, and control subsidiaries.
• Assess the effectiveness of strategies of low cost and differentiation used by organizations to compete in the industry.
• Understand the approach used in adopting innovative products and making specific value offerings.

Questions:

1. Should Trek have entered the Indian market alone, or was a partner required? What type of partnerships could the company have considered? Was Trek justified in entering the kind of partnership it did?
2. Was Trek justified in setting up its subsidiary in India in 2017?
3. Elaborate, with illustration, the corporate strategy being followed by Trek. Is it justified? What were other possible options?
4. What are some of the decisions that Trek made to support its corporate strategy?
5. What are some of the strategic decisions that Trek made to compete in the global market?
6. What steps should Trek take to increase the adoption of its bicycles?
7. What should Trek do to expand its presence in India?