ELECDYNE

Elecdyne

Elecdyne

Introduction

Elecdyne is a (fictional) Japanese SME, based in Tokyo, which started in 1990. Having grown from five workers initially, it now employs 100 staff, producing a range of electronic products such as televisions, CD Players, DVD players, MP3 players, hi-fi equipment etc using technology licensed from a number of multinationals.These include pictures, music, financial, consumer products and services and professional device and services. Elecdyne is considered as one of the most entertaining company in the world. In this paper, we would be discussing the corporate reputation of Elecdyne and how does it maintains it PR in the market. Corporate reputation provides an advantage to the company as it allows the company to succeed. This organizational reputation is more pronounced when consumers are familiar with the company. We must, therefore, manage the organizational reputation in order to be successful in business.

Currently it supplies only the Japanese market, and only purchases from local suppliers in and around Tokyo. Elecdyne had initial success in competing on price. However it has failed to grow its sales in the past two years and is finding it increasingly difficult to compete, given its need to pay for the licences, its high wage rates relative to China and Eastern Europe, and the near impossibility of hiring research graduates (who prefer to go to better paid jobs with Japanese multinationals such as Sony and Matsushita).

It is therefore in a situation where its profits have been steadily reduced and it now faces the prospect of making a loss in the next financial year (its first loss since it was started).

It also faces the general threats (and opportunities) created by an increasingly globalised business environment, particularly in terms of technological change, innovation, and the changing nature of competition (e.g. the growing importance of locations, labour costs and value-adding chains).

Strategic Analysis of the Company

Internal Analysis

One of the major strengths of Elecdyne is product innovation. The company's approach is doing what others are not doing, and this approach has paid off well in terms of great products and people covet. Throughout the history, Elecdyne has shown the ability to capture the imagination and enhance people's lives.

The company has been using cutting edge technology for more than 50 years. This technology affects the way people live today. Moreover, few companies are well positioned to drive the technological change into business and homes around the word, but Elecdyne has remained successful in doing so (Digital Imaging Digest, 2004, 3). The innovations by Elecdyne have become part of the mainstream culture of the company. Today, the company continues to duel the industry growth with sales of innovative Elecdyne products and the convergence strategy. For example, VAIO notebooks that raised the bar in form and function, the digital cameras that capture pictures on floppy discs, handheld devices and mini discs with digital PC link the high quality digital; network recorders that rewind, pause and fast forward the live television using hard disc drive. Strength is that Elecdyne is not only a market leader in the ...