Home Plus: Riding the Korean Retailing Rollercoaster
(8 pages of text)
In the late 1990s, multinational retailing giant Tesco selected joint venture with the Samsung Group as its market entry strategy into South Korea and created a new brand, Homeplus. Subsequently, the management of Homeplus implemented various policies aimed at localizing the business while also introducing business practices from Tesco’s british headquarters. It invested in growth and diversification through large discount stores offering an “all in one spot” shopping experience, small-sized super-supermarkets, private brands and online shopping. At the same time, the Korean retailing industry had become much more dynamic as competition intensified between various types of market players, including strong competitors affiliated with local business groups. Homeplus needs to rethink its position in a highly challenging market environment.
This case is appropriate for international business, strategy and marketing courses. It illustrates how multinational firms deal with pressures for local responsiveness and global efficiency when developing business in geographically and culturally distant host countries and gives students the opportunity to study the competitive environment in the increasingly globalizing retailing industry and the competitive challenges in the dynamic and complex East Asian market.
Republic of Korea, Large, 2013
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download