Elecdyne SWOT Analysis | Country SWOT For Labour

Elecdyne dress up Analysis Country SWOT For push backIntroductionElecdyne is a Japanese small medium enterprise ground in Tokyo, which started business in 1990 with a number of quint workers. all oer ten-spot years, the exploitation of the corporation has change magnitude triumphfully, staff strength has increased to speed of unfounded workers and with the use of technology licensed from a number of multinationals, the fraternity now produces a wide range of electronic products which acknowledge televisions, CD players, DVD players, hi-fi equipments, Mp3 players etc.A brief history into the Japanese saving shows that during the 1980s, the Japanese economy was the envy of the world. GDP per capita had risen from $5,000 in 1960 to $15,000 in 1980, and by 1990 had eclipsed $22,000. Through the leadership of companies like Sony, Japan had flex the clear leader in innovation of consumer electronics products and eminent volume civilize electronic assembly. The combinatio n of growing indigenous demand, global consumer electronics product leadership, and umteen years of enthronization in manufacturing technology and content certainly benefited Japanese electronics producers the 1980s.The unwashed Domestic Product (GDP) in Japan expanded at an annual rate of 3.80 percent in the work quarter. Japan Gross Domestic Product is worth 4909 one thousand thousand dollars or 7.92% of the world economy, harmonise to the World Bank. Japans industrialized, free commercialize economy is the endorse-largest in the world. Its economy is passing efficient and competitive in atomic number 18as linked to international employment, only if productiveness is far cast follow through in protected beas such as agriculture, distribution, and service. Japans artificial lake of industrial leadership and technicians, healthy-educated and industrious work force, high nest egg and investment rate, and intensive promotion of industrial cultivation and contrary deal produced a mature industrial economy. Japan has some natural resources, and trade helps it earn the foreign exchange chooseed to purchase raw(prenominal)(a) materials for its economyOverviewJapan has a history of struggling with deflation. The 1990s be practically referred to as Japans lost decade because of its 10-year struggle with falling prices. As a result, a stagnant Japanese economy dampened internal consumer and business demand, as well as signifi piece of asst investment in domestic electronics employment capacity. As a consequence, Japanese production has grown at sole(prenominal) half the rate of the tot industry over the last ten years, and local production share is on a trajectory to rectify to1980 levels over the neighboring five to ten yearsOver the retiring(a) two years, Elecdyne has remained stagnant the company had an initial success competing with price but is presently finding it increasingly difficult to compete bestown its look at to pay f or licenses, distribution of products is limited as supplies are within the Japanese market only, difficulty of hiring re attempt graduates, and its high wage rates as relative to Eastern europium and mainland China,In order to detect the pros and cons the company is undergoing, a SWOT analysis leave be carried out. The analysis looks at internal factors, the strengths and weaknesses of the business, and external factors, the opportunities and threats facing the business. The SWOT analysis will give a clearer picture into the status of the company and the business environment wherein it is operate in at the present time.STRENGTHS20 years experience in producing electronics100 staff workforcePossession of equipments needed fro production headmaster Product varietyWEAKNESSLimited market(supplies only to Japanese market) woeful financial positionLack of resourcesNo issue in the last two yearsLack of innovationNo branding commitment5% cut down on priceStaff is slight motivatedUnab le to recruit RD graduatesLack of international operations abject market shareOPPORTUNITIESFlexibilityHigh chance for innovationAdvances in technology and the ability to sell via the internetNew market opportunities could be a way to push elecdyneChanges in technology could give elecdyne an fortune to bolster future success. morphologic changes in the industry open different(prenominal) doors and opportunities for elecdyne.THREATSAggressive competitorsIncrease in licence costIncreased contestation from oversea is anformer(a) threat to elecdyne as it could lead to lack of post in their products/services. The actions of a competitor could be a major threat against elecdyne, for instance, if they bring in tender technology or increase their workforce to meet demand. A slow economy or financial slowdown could urinate a major impact on elecdynes business and profits. Lack of international operations. Rapidly changing market Products break down old very quickly.High cost of sav vyPOTENTIAL STRATEGIES FOR ELECDYNEIn order to compete in the electronics market, listed below are some strategies that rouse be useful to Elecdyne.Reduce product range to a few Introduce the company to E-Business Company can decease to an area of overthrow cost Source cheaper suppliers to reduce cost Develop marketing act to promote their products Re-branding of products in order to boost company name conjure work placements for students in order to boost RDRECCOMENDATIONAfter proper and overcareful analysis of Elecdyne Electronics Company, inorder for the company to grow promptly and remain in market, we the circumspection hereby strongly recommend that the company be moved to another outlandish preferably a country that is part of the three-bagger market, so as to gain access to more markets, deepening relations with the oversea economy.Significance of GlobalizationThe World Bank defines globalization as the granting immunity and ability of individuals and firms to ini tiate voluntary economical transactions with residents of other countries. Milanovic (2002). In this definition, freedom means the lack of barriers in the cross-border movement of capital and labour force, among other things, and capacity means that at that place is the ability to provide commodities and services across borders or to conduct economic activities in other countries. flavour back at the past, it appears that globalization advanced as technology and information-carrying capacity for transport, parleys, finance, insurance and other aspects developed and policy-making barriers to the movement of trade, capital and other items were removed. These developments boosted income levels, which in turn further deepened economic ties. thereof globalization is a trend that brings approximately economic development. (Boyacigiller, 1990 Harzing, 2001). In order to enjoy the benefits of globalization, it will be necessary to promote technological innovation in companies without bar and promptly adapt economic and social systems to respond to technological innovation, turn down barriers and foster human resources that are able to carry out these changes. Heizo (2004) Structural shed light on is important in Elecdynes relations with overseas economies Structural reform stimulates the domestic economy and is too important in the process of derivation benefits from globalization. In other words, the major objectives of structural reform are to vouch that the market mechanism fully functions, broadly enhance productivity and move labour and capital, among others, from low productivity areas to high productivity areas. This will also allow Elecdyne to reap benefits from closer economic ties with overseas economies. In business, the success of overseas operations has been attributed to several factors, such as good strategy, promising marketing, efficient production and excellent management.Among them, effective expatriate management has been well docum ented (Mendenhall and Oddou, 1986 Dowling et al., 1999). Despite the fact that the company has had no contact with overseas market, we the management of Elecdyne electronics commence decided to deduce a strategy on going global focusing more on countries within the TRIAD market (which are atomic number 63, North America and sec East Asia). Hence we have come up with five possible countries that we could relocate to fetching into consideration two main issues- feeler to technological expertise to avert reliance on large multinationals, and cost minimisation.These countries have been chosen found on some of the following reasonsAdvanced technologyWide area of landFavourable business environmentLow cost of raw materials and production passing skilled labour etc.Analysis of the five countries using SWOTCOUNTRY 1-GERMANYIt is the seventh largest country by area in Europe and the 63rd largest in the world. As Europes largest economy and second just about populous nation (after Rus sia), Germany shares borders with more European countries than any other country on the continent. Its neighbours are Denmark in the north, Poland and the Czech Republic in the east, Austria and Switzerland in the south, France and Luxembourg in the south-west and Belgium and the Netherlands in the north-west.Therefore Germany would conservatively be analysed using the SWOT analysis,StrengthsGermany is the UKs number one European export market and number two world-wideamong the worlds largest and most technologically advanced producers of iron, steel, chemicals, utensilry, vehicles, machine tools, electronicsMarket- Germany hosts the largest concentration of OEM plants in EuropePersonnel Germanys excellent highly-skilled labour force. 750,000 highly-trained and experienced peopleRD- Germany is home to 42 percent of all European OEM and tier 0.5 supplier automotive RD centers.Has some of the worlds best universities, these include skilful University, Munich Germany University of Bonn, Germany etc consequenceant research institutions in Germany are the Max Planck decree, the Helmholtz-Gemeinschaft and the Fraunhofer society. They are one by one or externally connected to the university system and contribute to a vast extent to the scientific output.WeaknessesThe socialists are a strong force and there is labour union problem.The wages are high which increases the be.Cultural differences decomposable business cultureStrict safety and packaging regulationsOpprtunitiesA total of 15 billion euros make available by the Government for RD projects in cutting edge technologies.Easy access to other EU countriesHighly developed E-commerce serviceHigh demand for electronic productsThreatsThreat from new emerging marketsProtection of environment and climateMounting pressure to reduce the CO2 emissions.adjustment time for adapting the high German standardsStiff rivalry from local and global competitorsCOUNTRY 2- POLANDPoland is the 9th largest country in Europe it has a population of over 38 gazillion people, which makes it the 34th most populous country in the world and one of the most populous Union. Its natural resources include coal, sulphur, copper, natural gas, silver, lead, salt, arable land. Poland would carefully be analysed using the SWOT analysis,Strengthscomparatively low cost of labour,favourable geographic stead on transportation system routes,large internalMarket (compared to other Central and Eastern Europe countries).availability of highly qualified labour forcepresence of universities, co-occurrence of authorities, the largest market in central Europe, and possibly the lowest labour costs on the continent,Member of the EULocation between East and westboundLong industrial traditionStable economyStable political systemWide educational systemBiggest country of the EU members in the CEEDiversified industryStill bewitching employment costs benignant tax systemMultinational companies such as ABB, Delphi, GlaxoSmithKline, Goog le, Hewlett-Packard, IBM, Intel, LG Electronics, Microsoft, Motorola, Siemens and Samsung have set up research and development centres in Poland.The Polish consumer electronics marketgrew by 4.5% in 2005 to reach a jimmyof 938.5 one thousand million.WeaknessesEU entrance may drive cost of living higher(prenominal)Poor communication infrastructureInsufficient management cultureWeak ability of domestic RD institutes to cooperate with industry and make commercial use of scientific search resultsShortage of financial instruments for SMEs and innovation development and low ability of entrepreneurs for self-financing of development investmentVery high levels of unemploymentPoland imports much more in electronics goodsthan it exports. The value of imports is morethan twice the value of electronics exports.In 2005 Poland imported electronics goodsworth EUR 6,911.3 million. The growth rate(over 2004) was almost 22.0%.OpportunitiesThe strong inflow of FDIin this celestial sphere in liquid crystal display screens, mobile phones, domestic audio and video equipment,appliances, automotive restraints complemented by electronic contract manufacturers(Flextronics, Jabil, Kimball) and telecom equipment manufacturers (Lucent, Alcatel,Siemens) creates opportunities for sub-supply, electronic components, supply chain and exam services.Poland is becoming the manufacturing hub for TVs in EuropeThreatsCurrent policies are not bringing changes about fast enough to maintain implementation of information societyIndustries in Poland will face higher costs with accession into the EUThere is an increase in competition as multinational companies are investing in the polish market.In Poland the leading manufacturersof TV sets are the international companiesJabil (commissioned by Philips), Daewoo,LG Electronics and Thomson.COUNTRY 3- INDIAThe Republic of India is in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populo us state in the world. It is bordered by Pakistan, China, Nepal, Bhutan, Bangladesh and Myanmar.Its natural resources include Coal, Iron ore, Manganese, Mica, Bauxite, titanium ore, Chromites, Natural gas, Diamonds, Petroleum etc. India would carefully be analysed using the SWOT analysis,StrengthsIndia is now the worlds twelfth largest economy by market exchange rates and the fourth largest in PPP terms (2003) after US, China Japan. meretricious high-skilled labour needed for theindustry is available in abundance in IndiaIndias low manufacturing costs in skilled labour and raw materials approachability of engineering skills.And opportunity to meet demand in the populous Indian market, are driving its electronics market.The electronics market in India, at US$ 11.5 billion in 2004, will be the fastest-growing electronics market worldwide over the next several yearsAbundant low-wage skilled/semi-skilled labour Indias strategic location offers a promising manufacturing/exporting base Abundant supply of raw materials Deregulation and liberalisation of industrial policy Incentive packages for Export touch Zones (EPZs) and ExportOriented Units (EOUs) are very attractive India is changing rapidly and offers an attractive opportunity base onmarket size (200 million middle class by the year 2000) and growth The non-resident Indians estimated to number over 15 million have majorimpact on the Indian economy, industrial policies and foreigncol elbow greaseations India is poised to be a major industrial power by the turn of the century.It is advantageous for American firms to position themselves as partnersin this fantastic growth. The business climate of India is improving (Naidu, 1984)India is one of the largest recipients of foreign direct investment (FDI) in the world. In FY2004/05, India received $3.75 billion.WeaknessesInfrastructure that postulate to be improved at the earliest possibility.Easing of foreign investment proceduresFrequent power failures and short ages leading to disruptionsOpportunitiesThere is a strong 100 150 million middle class thathas considerable discretionary income making India an attractive market forconsumer goods.ThreatsA restructured presidential term tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariffImport licensing regulations for non-high tech items remain a majorbarrier.UK companies are well positioned to apply advantage of this growing export and investment market.Indian policy does not favour the use of limited foreign exchangefor non-essential products.COUNTRY 4- TURKEY jokester is an emerging market with a population of most 72 million, 50% of which is under the age of 28. Turkey has the worlds 13th largest urban population at about 50 million. Its the worlds 15th and Europes 6th largest economy. Turkey is also a springboard to the markets of Central Asia the Middle East.Turkey ispolitically stable,the government having been in office for nine ye ars. Today, Turkey is investing significant sums in upgrading its infrastructure, including projects to build new dams, airports, roads and water and sewerage systems. Its recent, record economic growth, its talented, adolescent workforce and its geographical location as a immemorial hub for regional market access makes Turkey a hugely attractive destination for trade and investment.StrengthsNational minimum (gross) wage, which is currently YTL 608 per month (approximately 260 per month)average basic salary Japan 250,000 450,000 yen per month (UK 1700 3200 p.m.)Turkish made colour TVs have a good reputation amongst European consumers re price propertyExperienced local labour supply in abundance. As at 2009 approx. 2000 manufacturing companies in the field of electronics, approx. 30,000 employed in this sectorWeaknessesRaw materials for the electronics sector have the highest import rate as these cannot slow be sourced locallyTurkish is still the official language of commerc e, although position and some German are increasingly spoken. A professional part would be required for official meetings.In a year, total sum up of overtime cannot exceed 270 hoursOpportunitiesFinancial incentivesStrong export orientationExports of Turkish-made consumer electronic products have increased since 1990 in 178 countries, mostly directed towards the European marketsAccess to European market.Opportunity to expand markets to countries which include Romania, Germany, Portugal, Bulgaria, Jordan, Kazakhstan, Azerbaijan CroatiaThe Turkish electronics industry is young but dynamic. It is committed to competing on an international scale by producing high quality, well-priced goods supported by a wide range of products.On-going RD activities, engineering quality efficient after-sales serviceThreatsThe consumer market is now moving towards demand for LCD Plasma TV creating a need for Turkish manufacturers to invest in new technologiesAggressive competition from national MNEs . Arcelik Beko (subsidiaries of KOC Holding) second-largest TV producer in Turkey. Has 15% approx. European market share. Beko has strong international reputation. two have a wide product portfolio and their own technology products using plasma, LCD, MEMS technologies. Both companies have purchased international acquisitions such as Grundig AG (Germany) Home Intermedia strategy Division (2004). Arcelik has also established a partnership with Ubicom (Silicone Valley, USA) and plans to integrate the Ubicom microcontroller response into its projects where new technologies unique in their field have been used ( chic Appliances will be launched soon to consumer market).COUNTRY 5-CHINAStrengthsHuge consumer base. tout ensemble the time being lifted out of povertyCheap production. already 30,000 factories over there.There are several free trade zones, 53 new high tech zonesIn 2003 China supported 1,552 institutions of higher learning.If Hong Kong is include it has immense technical e xpertise and language skills as well.If Hong Kong is included then it has an outstanding harborGNP increasing an average of 9% annually(Benson, 1996) and ranked third in theWorld (Jing, 1993).Export growth of 25% and imports up 15%(Landy, 1996).Will continue to dominate light andmedium-tech industries because of thelarge market in China and the pool of labour.Leads world in direct foreign investment $135Billion (Taninecz, 1996). Foreigninvested companies represented 31.5% ofall Chinas exports (or about $46.9 billion).This netted about $8.4 billion in taxes(Taninecz, 1996 and China The NumbersGame, 1995.Worlds most lucrative market (Schafer,1996) of which China represents one-sixthof the worlds population(Taninecz, 1996).Surplus labor in rural areas andimpoverished farm lands (Gao, 1994) andgrowing 10 million per year. Estimatedto reach 250 million by 2000.Lower wages than Japan and Taiwan.Weaknesses degeneration is a problem.Government controls everything and joint ventures are enc ouraged. intellectual property rights not developed.Average inflation is 15%, and surpluslabour has resulted in liftunemployment and inequalities in incomedistribution (Benson, 1996).Railways, roads, communications, andpower supply are below standard.Employees need customer servicetraining.Roads are jammed with thousands ofbicycles, buses, trucks, and taxis.OpportunitiesOpportunity for lower cost but high quality production.As technological advancements are made we can hire better RD staff.Good place to control operations due to proximity and infrastructure.Direct Investments or Joint Ventures law and contractual ventures providequicker access to the market. Partners inChina can help with the bureaucracy,customer base, and distribution.ThreatsAmerican recession can hit ChinaCorruption can lead to loss of reputationUnderdeveloped Intellectual property rights can mean technology can be stolen by suppliersEffectiveness of investments in Chinawill only be manifest in the long-run andp olicies make it hard for non-Chinacompanies to make money.Lack of a legal structure similar to thoseEasily understood (Taninecz,1996).Having investigated these five countries based on their strengths and weaknesses, we the management team of Elecdyne have decided to shortlist these countries down to three which are1. Germany2. Poland3. China.