Elecdyne: A Case Study Of Global Issues Affecting Global Business

Cadogan, Kuivalainen and Sundqvist (2009) argue that a desire for the structural growth and acquisition of new markets for the products of a given firms is the factor that necessitates the involvement in the international business. Moreover, such commitments allow a secure a chance of acquiring new market share thus extending the life cycle of their products. Many companies strive for the representation in the global markets and use many strategies to enter foreign markets like merging with the substitute firms in target markets (Vogel 2008). However, there are major problems in the global markets that managers must put into consideration before venturing into the world markets. This paper discusses the possible managerial report on issues affecting global business from the point of view of …show more content…
It was created by 1990 in the country of Japan. Nevertheless, the enterprise experienced low returns for the first two years of its incorporation. There were varied reasons for such low returns including; the availability of small market shares as it depended solely on the market of Japan for the sale of its products. Furthermore, there was the problem of high costs of license that lead to the reduction in the profit levels of the firms. These factors result in the decrease in the development of this enterprise in the early stages of its incorporation into the Japanese market. The above scenario led to the desire for the acquisition of global markets with the aim of solving the problem of inadequate market share. Therefore, the executives of this enterprise devised strategies of operating overseas in countries like China, Germany, and the USA. Despite this bid, the management had a task of using an analytical tool of SWOT analysis in ensuring that their desire for oversea investments was a