In 2006 the electronic industry market supplied through the distribution grew in all over the world. In 2007 this growth continued and it was not seen in all the countries of the world and for the export Market 2007 was a bad year. In 2007 the Merger and Acquisition continued with further consolidation in the export industry, many smaller distributors outgrew the market average. The focus in Europe becoming more involved in the design of the products on behalf of the producers, even though the manufacturing will take place somewhere around the world has caused many suppliers to re think their distribution policy.. The 2008 report will show the companies that have been successful at maintaining the trade.
The Swot Anayalasis
Internal Analysis
A) Strenghts. B) Weakness.
External Analysis
A) Oppurtunities B) Threats.
Strengths
- Right products, quality and reliability.
- performance vs. other competitors
- Good quality product and durability.
- Had the capacity to produce spares.
- Highly qualified staff
- Perfect customer relation.
- Had good delivery system..
- Product innovations ongoing
- Products have required accreditations.
- Confident management and well committed.
Weaknesses
- There is no growth in last 10 years.
- There is no end of year bonus.
- The key staff is leaving the company.
- Less direct marketing experience.
- Cannot able to recruit new research and development graduates.
- Limited budget.
- Company chief designer is leaving the company.
- Did not have a perfect plan.
- Training staff need training.
- Training is needed to customer service staff.
Opportunities
- Able develop new products.
- Domestic companies have poor products.
- There will be good profit margins.
- Response for new product is good to the end users.
- There is chance to export.
- Had the ability to surprise competitors.
- It will Support the economies of core business.
- Could get better distributer deals.
Threats
- License holders are asking to increase 20%
- Environmental effects would favour larger competitors.
- There is lot of distribution risk.
- A market demand varies seasonally.
- To Retention key staff is very critical.
- There could be a chance of distract from the core business.
The Elecdyne company should look in to some important points as to survive their company as analysing the swot and as well as porter five forces the company should look in to few solutions as the company should make their products with high technology as day by day the technology changes so the company should bring in the recent trends in the technology. The company should also produce their products with good quality and as they also should see the factor of durability. They also should increase the brand value and the company also have to update with the unique selling points according to the customer satisfaction.
The company should have to take the Japanese electronics and information technology industries association(JIETA) help in order to go in to the Japanese market and as well as the other market because (JIETA) is mostly known all parts of the world so the company have to take this opportunity and turn it to their advantage
The company also should look in to the sponsorship from wide range of sources like government and as well as private organisations and the company had the advantage if they join in the (JIETA) they will get many advantages as the finance part is the major one. The company should also look in to the partnership with the financial institutions. The company can also sell some shares in order to get some financial help. Regarding the license the company should take the advantage of Electronic industries association (EIA) as if the company is registered with them the company will get the license for low cost and there will be no need to increase 20% for the renewal of license
THE THREE COUNTIRES WHICH I HAD CHOSSEN
I have chosen the three countries based up on the labour cost, access to technology, the local market and as well as environment conditions for the foreign companies. The three countries are
1) INDIA.
2) SOUTH AFRICA.
3) IRELAND.
WHY THESE THREE COUNTRIES
These are the three countries which I choose for (ELECDYNE) to go in to the market
as these countries had good infrastructure for electronic products market and their governments are also open for direct foreign investment these three countries have wonder full labour facilities when compared with the other countries around the world and at the same time labour costs are also low. These countries had wonderful economies and as well as the place for the company to start.
If we look at the taxes these three are the better countries and we can get the license for the trade also very easily even though the world is facing the credit crunch it does
not effect these countries electronic products markets and at the same time people are also looking for some foreign technology, and at the same time the local companies are looking for some foreign collaboration so these is the right time to get in to there market. There are few draw backs as well in these countries but when compared with other countries these are not that much big.
WHY INDIA
I suggest (ELECDYNE) company to go to India because of its greater infrastructure and as well as boom in the electronic industry especially in India. As the country had huge population people use lot of electronic products as if we look in to Indian culture their main entertainment is television and if we look in to the recent survey about this issue out of 100 people nearly 60 people are willing to buy television and watch it. So and at the same time if there is lot of young generation in India where they are willing to buy mp3 players.
In India people used to watch lot of movies even though there are lot of movie theatres are there people still prefer to see their favourite movie in CD player by putting a cd.Indian government is also open for foreign companies and they are also giving support to them by offering them the place for a very cheap price and also giving some benefits for the company like 5% reduction in tax if they employ these many people from locally and at the same time they are reducing the road taxes for their transport vehicles.
Main economic aggregates of Ireland.
| AGGREGATE | 2003 | 2004 | 2005 | 2006 | 2007 |
| (GDP) | 139,442 | 148,975 | 162,168 | 177,286 | 190,603 |
| (GNP) | 117,717 | 126,096 | 137,265 | 152,456 | 161.120 |
| (GNI) | 119,150 | 127,560 | 139,072 | 153,765 | 162.121 |
| (GNDI) | 118,149 | 126,489 | 137,530 | 151,952 | 159,927 |
ADVANTAGES AND DIS ADVANTAGES OF JOINT VENTURE.
ADVANTAGES
Can bring in many new technologies in to the company.
Financially the company will become stronger.
Less risk involved.
Cost reduction can be seen.
DISADVANTAGES
The leader ship might be a problem.
Chance of less communication.
Lot of risk involved in distribution.
Patents will be held jointly
CUT-ELECDYNE JOINT VENTURE
ADVANTAGES
No need to pay rent for 5 years (rent paid by WAG).
It is offering access to ERI facilities for staff and students.
Patents can be used free of cost.
WAG is going to pay 2000 per person for their training.
DISADVANTAGES
Patents held jointly.
Cut did not have that much knowledge in technology field.
Cut will hold 20% minority share holding.
COMPARISN WITH MERTHYR TYDFIL LOCATION AND SINGUR LOCATION
| MERTHYR TYDFIL | SINGUR (INDIA) |
| Less availability of land (41hectares) | More availability of land (83hectares) |
| Investment cost is on high side | Least investment cost |
| Skilled labour force but labour costs are high. | Multi skilled labour force and labour cost is low. |
| Only road way to the site | Port is very near and had excellent roads. |
| Minimum investment for development. | Rs.1500 corers were invested for development. |
| Tax is a bit higer. | Tax is lower for foreign companies (14.5%).Including local tax. |
There is huge possibility for Elecdyne to go for joint venture in India along with the LG because LG had more market value and as well as it is looking for some foreign company and the technology as well. We can call that joint venture as LG-ELECDYNE INDIA and there is a R&d for LG from IIT Kanpur which is leading in INDIA. The LG is also having good distribution system all around the country.
CONCLUSION
This report has discussed about the opportunities for Elecdyne Company to expand its market a part from the Japan it has all the information regarding the various countries. I would like to say that India well be the better chance for Elecdyne to start up their business as it has many advantages like huge population and good infra structure and usage of electronic products are more. As India is a developing country it has all the opportunities for Elecydyne to enter in to Indian market. I suggest Elecdyne to go to India for their expansion of electronic products in order to achieve a profit for the company.