International Business Term Paper Example | Topics and Well Written Essays - 1500 words

International Business - Term Paper utilizationToy fabrication is one of the growing industries of the world. It encompasses both electronic and non electronic playacts and games. The global chat up fabrication is not just associated with games and fun, rather it is dubbed as one of the hypercompetitive industries. The sector is characterized by secret product using practices and occasional indictment of corpo enumerate surveillance. Some of the major players in this industry are Hasbro, MGA Entertainment, Matteland, LEGO, Namco Bandai, Sanrio, Barbie and Steiff among others. In addition, the bid hardware division sometime also comes under the plaything industry. In this segment, Nintendo, Sony and Microsoft are the major players. The industry is driven by product innovation and strategic licensing. The reason behind strategic licensing acting as one of the key drivers of the industry is because most of the revenue of the meet industry generates from exporting or abroad mark eting activities. On the other hand, product innovation is the only tool through which thousands of toy manufacturing companies variousiates themselves from the others. The charge in the population of children of below 12 years of age is playing a decisive employment in increasing the demand for toys across the globe. As a result of that, the industry is growing at a steady pace. According to reports, in the year 2012 the toy industry was estimated to be at a pry of 84 billion U.S. dollars. Out of the total industry value, around 20 billion is attributed to the US market only. Hence, it is obvious that in terms of total turnover USA is the leader of global toy industry. However, majority of the toys being used in the country is imported. Apart from the US, another major player in the toy industry is China. Some of the cheaper plastic toys that are prime in stores, restaurants, daycares centers, fairs, homes and cereal boxes that are found across the globe are mostly manufacture d in China. In terms of production, the Chinese toy industry is the largest in the world. The industry generates billions of dollars and also employs millions of people across the globe. Hence, from the points made above it is believed that the scenario of the global toy industry is clear to the reader. (Source Pierstransportation, 2012) In this report, a comparison of the southeasterly African toy industry and Seychelles toy industry will be carried out and do to the same, the study will make use of the different strategies and frameworks proposed by Michael E. Porter. Once a comparison between the two countries is drawn, the report seeks to provide a additive conclusion and recommendations pertaining to the caveats of investment and the occupation activity required to operate efficiently in that market place. South African Toy Industry Overview The overall scenario of the toy industry in South Africa is pleasant for the business owners as well as the government. The high turnov er of the industry is playing effective roles in fortify the national economy of South Africa. The toys and games section witnessed a strong growth in terms of the value achieved. However, during the year 2009 when the country suffered a major economic downturn, the toy industry was negatively impacted. As per reports, the gross sales of traditional toys reached US$72.4 in the year 2009, thereby reflecting a decline of 3% from the previous year. wholeness of the reasons for this is the shifting trends of consumers. The construction toys and activity toys accounted for the largest share of 18.5%. On the other hand, the sales figure of dolls and figure toys declined by 5%. In the similar way, the sale of indoor games also declined by 3% (Euromonitor, 2009). Furthermore, the recovery rate was also extremely slow due low spending of consumers in such products. As a result of that the industry is still in the process of recovery. The secondary research about the South African toy indu stry has shown that the country has been a major toy exporter (Hill and Jones, 2012). Furthermore, reports have also suggested that the