Explanation of Japanese Electronic MNEs Global Expansion Pa essays

Explanation of Japanese Electronic MNEs Global Expansion Pa essays Explanation of Japanese Electronic MNEs Global Expansion Pattern During the late 1970s leading up to the 80s and early 90s, Japanese electronic firms expanded their organisation vigorously. As well as domestic expansion, the firms also spread globally in all regions. However, a discernable pattern can be found among the relationship between the nature of the activities and the target countries. In this essay, I will first assess the possible expansion strategies that were possible to the Japanese multinational enterprises (MNEs) and suggest my personal recommendation. This will be done through the use of several frameworks, most notably the OLI (ownership, location, and internalisation) model to describe the firms motives for expansion, and Porters Diamond of National Advantage and the PEST framework to explain the benefits of different regions. Then I will draw from the article Global Location Behaviour and Organizational Dynamics of Japanese Electronics Firms and Their Impact on Regional Economies by Masahisa The firms in question are nine Japanese electronic companies; Hitachi, Matsushita Electric, Toshiba, NEC, Mitsubishi Electric, Fujitsu, Sony, Sanyo Electric, and Sharp providing a broad range of electronics products, from consumer electronics to industrial systems to electronic devises. To examine the motives for MNEs expansion, we can utilise the OLI framework. The OLI model looks at the ownership advantages, location-specific advantages, and internalisation advantages that can be gotten out of foreign direct investment (FDI) to overseas countries. Ownership looks at firm-specific characteristics that might justify the move abroad (such as competitive advantage over competitors in host country through strong branding), location-specific advantages look at the benefits the target countries present to the MNE, an...