Why Trade InternationallyUnit 5By James RichardINTRODUCTIONThe two businesses i have chosen are Cisco Systems and EDF.EDFEDF Is the leading energy company that provides low-carbon electricity to the uk. It was originally in france in 1946 and was founded in the uk in 1998; EDF’ uk headquarters are in London.SonyTypes of business activity – EDFIMPORTEXPORTEDF produces and exports the UK’s largest amount of low-carbon electricity producing ? of their energy from nuclear powerMULTINATIONAL ENTERPRISEASSOCIATED BUSINESSTypes of business activity – SONYIMPORTEXPORTMULTINATIONAL ENTERPRISEASSOCIATED BUSINESSSony acquired Columbia pictures in 1988 for $4.8billion 4 years after coca cola bought it. This purchase initially lost Sony over $2 billion however with blockbuster movies such as spider man and James Bond, Sony and Columbia Pictures made profits over $4 billion worldwide.
One of Sony’ best selling products ( the PlayStation) was heavily helped by them acquiring a company called Gaikai in 2012 for $380 million. Gaikai allowed Sony to add features such as Share play allowing people in different locations to play games together this increased their player base as people were able to play with their friends while not being in the same room as them.Conducting Business Internationally – EDFConducting Business Internationally – SONYDIVERSIFICATIONOver the years Sony has branched out to cover many areas of the technology market including, radio, television, video cameras, digital camera, game consoles and mobile phones.MARKET LEADERSHIPSony is the leader of the console market with a share of 57% as of 2016 and is predicted to rise over the following years with expected sales to rise over $20 billionADDITIONAL REVENUE STREAMSSony has started to research into artificial intelligence and have invested in a company called Cogitai. Cogitai’ goal is to create an AI that learns from babies “in ways reminiscent of how human children do” CHOICE OF MARKETSony’s choice of market is towards developed countries and advancing in technology FINANCING OF INTERNATIONAL BUSINESSBritish chambers of commerceThe British Chambers of commerce represent business communities to help amplify priorities and concerns the area has by providing a voice for them. Trading blocsEU – The European Union was established on the 1st of November 1993, It was formed to provide unity between european countries allowing them to operate under a single market, this allows for free movement of goods, money, services and people between other member states.
The EU currently consists of 28 countries which are Austria, Belgium, Bulgaria, Croatia, Republic of “Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.”Mercosur – Mercosur was created in 1991 and consists of Argentina, Brazil, Paraguay and venezulaFree Trade Areas