– Members and Staff Experience: Elecdyne has been in the market for a number of years and have all the necessary knowledge and expertise which could help them attain a competitive advantage in internationalization of their business.
– Relationship with Other Companies: Elecdyne has been able maintain strong relationships with the suppliers, vendors, distributors and retailers over the years. These strong bonding could ease their entry in the international market.
– No growth for the last two years: The Company has been observing difficulties to generate enough amounts of sales to earn profits. The major reasons are high licensing costs and high cost of labor.
– Technological license renewal: The licensing cost is quite high. The company is lacking the latest technology which is causing a major hindrance for the company’s growth.
– Supplies only in Japanese Market currently. Elecdyne has no international experience
– Budget Constraints: As mentioned earlier that the company has not been able to generate profits for the last two years. It has limited capital and investment is quite less whereas the investment required to enter other countries is quite a lot.
– Unable to Recruit R&D Graduates: Due to the limited budget, the company has been unable to hire R&D graduates.
– Lack of Innovation: As they have been unable to recruit R&D graduates they haven’t been able to come up with the innovations that are necessary in the electronics market.
– Expanding in Different Markets: The Company can gain a lot of profits by entering into different nations which have a larger customer base like India, USA, Russia and China.
– Technology: Elecdyne is lacking technology and if they can come up with an innovation they could make a breakthrough globally in the electronics market. The technology is easily available in high tech countries like America and Germany.
– Expand the Online Business Service: The world is moving towards e business and there online service can help them earn a large amount of profits.
– Cheap Labor and Infrastructure: In countries like China and India, labor is available at cheap prices and the overall cost of production is quite less. Elecdyne can setup a production house in China and can export to other markets.
– Skilled Labor: In China and India there are a great many Engineering schools and the employment rate of these two countries is not that high which means that there will be availability of skilled labor.
– Low Competition: In developing countries there are not a lot of companies operating which can provide Elecdyne an easy route to earn profits.
– Key Staff Leaving: Many of the key members of the staff have left the company which can be a major issue for Elecdyne in future. Lack of budgets has been a major reason for the staff members to switch to other companies because of better salary packages. The chief designer of Elecdyne has also left the company.
– Culture: Culture encompasses a number of elements including language, social structure, economic philosophy, political philosophy, manners and customs. Elecdyne need to evaluate all the aspects before entering into the market.
– Local Players: A major threat to Elecdyne will come from the local players of the industry. The local players have better knowledge and understanding of the market which will be providing the local players an edge.