Internationalization of Japanese Electronic Company
Introduction
This report deals with the internationalization of a Japanese company called Elecdyne. Elecdyne is located in Tokyo, Japan, and has manufactured electronic consumer goods since 1990. At the moment Elecdyne employs 100 staff to manufacture products such as DVD players, VCR players, mp3 players and hifi equipment.
Currently Elecdyne supplies products to the Japanese market however it has failed to grow its business in the last two years. This is mainly because of the licenses they have to pay, high wages compared to other countries and lack of R&D staff. Furthermore it is facing a highly competitive market in terms of technology change and innovation.
Therefore Elecdyne is keen to internationalize to another country. This country has to provide Elecdyne with:
* Access to technology * Access to markets * Minimum labour costs
The countries Elecdyne is taking into consideration to internationalize to are: China, United Kingdom and Mexico. This report analyses the different countries by using appropriate frameworks and data collected from different resources. Based on the analysis one country has been chosen to internationalize to. The method of internationalization and the possible products Elecdyne can produce in this country are also analyzed in this report.
1. Country analysis
A combination of two frameworks is used to analyze the countries Elecdyne can internationalize to. The SWOT framework analyses Elecdyne’s strengths and weaknesses and their opportunities and threats related to the potential countries they can internationalize to. A PESTLE framework is used to describe the elements in the opportunities and threats part. PESTLE is an acronym that describes the following factors:
* Political * Economic * Sociological * Technological * Legal * Ecological
The strengths and weaknesses of Elecdyne are described in the diagram below.
Strengths | Weaknesses | * All of
This report deals with the internationalization of a Japanese company called Elecdyne. Elecdyne is located in Tokyo, Japan, and has manufactured electronic consumer goods since 1990. At the moment Elecdyne employs 100 staff to manufacture products such as DVD players, VCR players, mp3 players and hifi equipment.
Currently Elecdyne supplies products to the Japanese market however it has failed to grow its business in the last two years. This is mainly because of the licenses they have to pay, high wages compared to other countries and lack of R&D staff. Furthermore it is facing a highly competitive market in terms of technology change and innovation.
Therefore Elecdyne is keen to internationalize to another country. This country has to provide Elecdyne with:
* Access to technology * Access to markets * Minimum labour costs
The countries Elecdyne is taking into consideration to internationalize to are: China, United Kingdom and Mexico. This report analyses the different countries by using appropriate frameworks and data collected from different resources. Based on the analysis one country has been chosen to internationalize to. The method of internationalization and the possible products Elecdyne can produce in this country are also analyzed in this report.
1. Country analysis
A combination of two frameworks is used to analyze the countries Elecdyne can internationalize to. The SWOT framework analyses Elecdyne’s strengths and weaknesses and their opportunities and threats related to the potential countries they can internationalize to. A PESTLE framework is used to describe the elements in the opportunities and threats part. PESTLE is an acronym that describes the following factors:
* Political * Economic * Sociological * Technological * Legal * Ecological
The strengths and weaknesses of Elecdyne are described in the diagram below.
Strengths | Weaknesses | * All of
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