STEEP analysis comes as the most basic tool in gauging the contributing factors of a particular industry. This involves a thorough study of the social, technological, economic, environmental and political aspects of a region, which influences the various organs supporting an industry and simultaneously contributes to its growth. Elecdyne is a company that manufactures electronic products based strictly in Japan.
Owing to unavailability of technical support staff and high expenditure in procuring licences for the technology harnessed in manufacturing, the company has failed earn profits, though it had a commendable performance initially. Presently, this company is keen towards a gritty internationalisation stratagem. A STEEP analysis of Japan can put forward the very basic reasons as to why it has a good chance at expanding its business and generating blithe revenues.
The objective being to enhance and diversify business, Japan poses to be a very ‘favourable’ option for Elecdyne to internationalise and ‘globalise’ itself gradually. As seen in the STEEP analysis, the society, and culture is a contributing factor in obtaining a productive workforce to be employed. In terms of technology, Japan pioneers in the same, and is the greatest advantage for electronic goods producing industries like Elecdyne. Environmental protocols ensure minimal pollution without compromising the company’s agenda. Moreover, the stable economic trends coupled with a government striving towards enhancing its industrial sector, Japan and Elecdyne is a great combination to go global and promote itself.