Elecdyne as a company has never had contact with overseas markets. Nevertheless, all of the top management team has learnt English, and several of them have studied abroad (in the USA, Canada, France or the UK). The management team are now contemplating the possibility of internationalisation and their debates over suitable countries to locate / sell in revolve around issues such as production cost reduction, access to technological expertise (to allow them to avoid reliance on large multinationals), access to new markets, and ease of creating and managing an international company.
There are several extant models that explain the internationalisation of businesses, the ones most commonly referred to being Eclectic Paradigm, Stage Growth Theory , Diamond Framework, Network Approach, International Entrepreneurship, and the latest to come into currency Liability of Foreignness. Fore the internationalization of Elecdyne, Diamond Framework analytical tool is used (Jones, and Coviello, 2005).
Porter (1990) comes up with the Diamond Framework to elucidate the foremost determinants of competitive advantages and their connections. Underneath the framework there are four competitive advantages: demand conditions, factor conditions, related and supporting industries, and context for firm strategy and rivalry. As well, there are two exogenous factors: role of government, and chance events; which play an imperative role in controlling those four competitive advantages.