BUSINESS

Global Business

Table of Content

1.1. Terms of Reference4

1.2. Introduction4

1.3. Methodology5

2.1. Findings5

SWOT Analysis of Elecdyne5

2.2. Profile of India7

?PESTEL7

?Euro money Country Risk7

?Economic Rating & Currency Exchange7

?Cultural Aspects Hofstede7

?ONDD7

?Entry Strategies7

Porter's Diamond Model10

2.3. Profile of Brazil12

?PESTEL12

?Euro money Country Risk12

?Economic Rating & Currency Exchange12

?Cultural Aspects Hofstede12

?ONDD12

?Entry Strategies12

Porter's Diamond Model14

2.4. Profile of China15

?PESTEL15

?Euro money Country Risk15

?Economic Rating & Currency Exchange15

?Cultural Aspects Hofstede15

?ONDD15

?Entry Strategies15

Porter's Diamond Model17

2.5. Analysis and Evaluation18

India18

China19

Brazil19

3.1. Conclusion20

3.2. Recommendation21

References22

Appendix24

Clusters (Globe Survey House et al 2004)24

Country Risk24

Global Business

1.1. Terms of Reference

This report on the possibilities of internationalization for Elecdyne Electronics has been requested by Janet Beale to be completed by 7th January 2013.

1.2. Introduction

Elecdyne was established in 1990 based in Tokyo. The company is small medium enterprises produce and sells electronic items such as CD players, television, MP3 players etc. Elecdyne has adopted the strategy of taking technology licenses from different countries to obtain maximum market share in a global market. Currently, the company is primarily supplying its products in Japanese market by buying supplies from local suppliers in the country.

Currently, Elecdyne is facing financial crisis because of slow growth in sales and profits. The management is failed to capture the international market due to high wage rate and complexity in recruiting highly qualified staff especially in China and Eastern Europe. International competition is growing rapidly which requires companies to adopt advanced technological products with effective management and marketing strategies.

The major strength of Japan is that Japanese market is one of the largest electronic industries in the world. International companies are entering in the market by offering high quality products by adopting innovations in technologies (OECD, 2010). The weak point of Japan is that the country has relatively low access to technology and high labor cost due to which Elecdyne is unable to implement cost reduction strategy. The most attractive opportunity for the company to operate in Japan is that Japanese companies are trying to beat competitors but international rivals are coming up with faster improvements, easy to use software and online customer services by implementing advanced technology and effective marketing strategies (Wakabayashi, 2012, pp. a1-4). Threats include barriers to communication with international agents, unavailability of technological resources in the market and highly competitive market including both local and international firms.

1.3. Methodology

The research methodology for the research comprises of data collection techniques including secondary data collection from multiple sources of data accumulation, including books, internet publications, journals and articles. Data collection used different mediums such as publications, broadcast media literature and other sources. Data is collected through different countries' information and analysis will take us to the specific chosen countries appropriate for the company.

2.1. Findings

Through data collection and thorough research, the short listed countries are China, India and Brazil.

SWOT Analysis of Elecdyne

Strengths

-Elecdyne is strong in managing costs which enable the company to compete on price.

-The management is expert in English language which may improve the overall performance by communicating effectively with international firms.

- The company is well experienced in surviving in a large and competitive ...