A business is driven by Political, Economical, Social, and Technological. Ecological and Legal forces. If we compare the market of Japan with other markets there will be a huge difference. Elecdyne must need to carefully monitor the PESTEL forces that drive business and then plan accordingly. Here we are analyzing the PESTEL forces for China where Elecdyne can expand their business.
1) POLITICAL: China has an extremely stable government and it is considered to be the hub of many international business activities. The tax laws and employment laws are very much relaxed. The trade barriers are quite low. There is an open market economy in China which can provide Elecdyne a very good opportunity to carry out their business.
2) ECONOMICAL: China is the fastest growing economy of the world. The growth of the country’s economy helps the growth of the firms operating in the country. China offers many incentives to the companies operating in their country. These incentives can help Elecdyne to lower their costs.
3) SOCIAL: China has the largest population of the world which means that they have a large workforce. Skilled and cheap labor is easily available. China has a lot of focus towards reengineering and research. Such environment can help Elecdyne to make money and to attain long term sustainability.
4) TECHNOLOGY: China is considered to be the manufacturing hub of a number of international brands offering the best products of the world. There is a culture of innovation and availability of skilled workers and engineers which can help Elecdyne in making technological breakthroughs which are precious in the electronic market.
5) ENVIRONMENTAL: Japan encountered a major tragedy last year which created a lot of problems for the manufacturing companies. China has a very diverse geography. There is less threat of natural calamities over there. China has one of the largest rivers in the world and each year these rivers cause floods and damages to many cities. So it is not 100% risk free. But in China Elecdyne will have better environmental conditions.
6) LEGAL: The legal charges required to enter the market are not that high in China. Lease laws and employment laws are quite flexible and relaxed which will not cause that much of a problem to Elecdyne.