Global Business

Topics: SWOT analysis, Investment, Economics Pages: 10 (3644 words) Published: March 24, 2013
Global Business Assignment

Student ID: 11071850
Name: Qingyuan Lin
Submission Date: 09/01/2013
Word account: 2585

1.0 Introduction3
1.1 Background3
1.2 Objective3
2.0 STEEP table analysis4
3.0 Country Analysis6
3.1 country select and compare6
3.2 Porter’s Diamond Theory7
3.3 SWOT analysis8
3.5 Summary of data13
4.0 Type of method to internationalize13
5.0 Conclusion15

1.0 Introduction
1.1 Background
Elecdyne is a Tokyo corporation founded in 1990, which dedicated themselves to markets a series of televisions, CD Players, DVD players, MP3 players to their wide range of domestic customers. In recent years, with the deepening of domestic electronics market competition, the company's profit declined in the last two years, and now it is facing the uncertain outlook. Moreover, the company has to confront the chief designer leaving, growth of technological licenses fees and loss of product price advantage. It is evident that Elecdyne does not have the capacity to afford the license fees and recruit new R&D graduates. In order to relieve the internal and external crisis of the Elecdyne, the board of Elecdyne has decided to go international. As the European Commission (2010) views that a immediate relation between internationalisation and increased SME performance: international activities strengthen development, improve competitiveness and sustain the long-term sustainable development of companies. With regard to Elecdyne, the management team focuses on the production cost reduction, license for patent technology and market access; and cultural diversity and uncertain risk will be also considered. Though the company has never touched with overseas markets, all of the top management teams have learnt foreign language, and some of them held the oversea university diploma. But what is certain is that the Elecdyne will get the chance to redevelop its business in the globalization. 1.2 Objective

The objective of this report is to analyse the global environment for the electronics industry by using the STEEP and SWOT theory for the three potential countries. The three considerable countries compared in this report are China, Thailand and the United States respectively. The report based on data comparison and pragmatic theoretical analysis, to determine the most suitable country and the optimal way to enter new markets. 2.0 STEEP table analysis

In order to analyse the environment of Elecdyne more thoroughly, the STEEP table will be utilized. As Venture Navigator (2008) mentioned, The STEEP model is a tool to help the user think about the broader issues that have an influence on the industry or service field as a holistic study, including five main factors: Socio-cultural factors, Technological environment, Economic environment, Ecological environment and Political factors. The following diagram illustrates a comprehensive business environment of the Elecdyne. Socio-cultural factors| 1. As Weil (2008) explains that after 2008, electronic products are consisting in our lives ubiquitously. People who likely to choose the electronic products to acquire external information from their Mobile phones or television. 2. Favourable population structure, rising discretionary incomes of consumer, and developing more relevant lifestyles is expected to facilitate the global consumer electronics industry. (Lucintel, 2012) 3. With the proliferation of broadband, accessing the media has become easy and rewarding for consumers. And suppliers of the electronics are constantly updating their technology innovation to keep up with consumer requirements. (ALTERA, 2012)| Technological environment| 1. With regard to electronic, technological innovation has become indispensable to adapt new marketplace competitions and cater to consumer preferences. (Accenture, 2010) 2. According to Accenture (2012) reported Smartphones and tablet PC are the “star”...
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