Module: Global Business (ER3S72)
Tutor: Dr Gabor Horvath
Word Count: 2563
Table of Contents
|1.0 |Introduction | 2 | |2.0 |Findings | 3 | |2.1 |STEEP | 3 | |2.2 |Porters Diamond | 4 | |2.3 |Internal Analysis | 5 | |2.4 |External Analysis | 6 | |2.5 |Weighting Analysis | 6 | |3.0 |Elecdyne’s Decision | 6 | |3.1 |Elecdyne’s Strategy | 7 | |3.2 |Option of FDI | 8 | |4.0 |Conclusion | 10 | |5.0 |References | 11 | |6.0 |Appendix | 13 |
Founded in 1990, Elecdyne, as a Tokyo-based SME expanding from 5 workers then to present 100, is mainly in the business of electronic items with various technologies licensed from numerous multinationals. Recently, Elecdyne is the only supplier of the Tokyo markets while purchasing from local providers within or around Tokyo. Although Elecdyne made success initially in the price competition, it failed to promote its sales and thus underwent great losses because of the need to defray licences, declined sales and soaring wage rates. The reason underlying this disaster is originated from the weakening competitive power of the Japanese manufacturers and the increasing of the costs for processing products. For example, Japanese corporations find it difficult to compete with lower-priced counterparts of China and India and the Korea within the electronic field.
As Elecdyne is a company without any previous contact with foreign markets, its management group are now on the fast track to speculate the likelihood of internationalization and the debates with other countries to allow for their requirements for easy access to cheaper workforce, novel innovation and technology, and competitive markets. Among the three countries Elecdyne inspire to make internationalised, Germany is suitable to offer competitive markets, Korea new innovation and then China cheaper workforce. For the purpose of this kind, the report to appear is mainly devoted to the collection of information about the aforesaid issues that may impact Elecdyne and even the plan to internationalise this company. Subsequent to this is the analysis and conclusion part of the country that Elecdyne choose to enter.
In analyzing the current situation of Elecdyne, an inexpensive yet adequate STEEP table has been formulated at the first stage so as to enable Elecdyne to know...
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