2.Background of Lotte2
2.1The history of Lotte2
2.2 A presenter of South Korea3
3.Business traditions of Lotte3
3.1A strong sense of national identity3
3.2 Hard-working & Dedicated attitude in Lotte4
3.3 Pursuing high quality of product and service5
4.Strategic Development of Lotte6
4.1 Product development and diversification7
4.2 Advanced brand management8
4.2.1 Be ‘Lotted’8
4.2.2 A well-built official website8
4.2.3 Interactive online shopping8
4.3 Win market from making a difference9
With the advent of 21 century, the Lotte Group has grown into first-rate competitive business entity. It successfully operated in food, retail, tourism, construction and heavy chemical sectors. Based on its solid financial structure, innovative products development, brand management system and strong investments, Lotte has begun to implement plans for the worldwide business.
This paper has two aims. Firstly, it aims to gain insight into the development process of Lotte. Secondly, it will increase knowledge and understanding of the key elements that contribute to the success of Lotte.
Three main parts will be covered in this paper. They are: the background and development process of Lotte; its unique business traditions and how these business traditions support its development, as well as major strategies help Lotte to gain competitive advantages within the industry. For example, Lotte continually develop new products to meet the different needs of its customers and pay great attention to the quality of the products.
Strategic issues will also be discussed at the end of this paper and a number of recommendations have been provided for addressing the issues of Lotte.
Lotte is one of the largest enterprises in South Korea which has achieved great success in wide industries. The continual expansion and extension of Lotte are based on many factors. In this paper, the key elements that contribute to the achievements of Lotte will be identified and analyzed. They are: unique business traditions, dominate external environment, and competitive strategies. A number of recommendations will also be provided to address the issues that Lotte is facing.
2. Background of Lotte
Lotte is one of the largest food and retail group in Japan and South Korea, which consists of over 60 business units and 60,000 staff. The business in Lotte crosses diverse industries such as manufacturing, tourism, heavy chemical, finance, welfare, and others (Washington, 2007). Until now, Lotte has become the representative company of Korea in the world.
2.1The history of Lotte
South Korea suffered a lot during the World War II and its Civil War, most of the social facilities were seriously destroyed, and people in South Korea were extremely lacking of basic living materials (Chee, & Byungnam, 1996). At this stage, there is an emergency for South Korea to rebuild its social facilities. Meanwhile, the South Korean people were eager for having better living conditions.
Under these circumstances, the food company of Lotte Corporation was first established to satisfy the fundamental needs of the economic recovery. As a result, Lotte was setting off its business journey by the late 1960’s known as a food industry.
2.2 A representative of South Korea
Lotte Group is a typical South Korea large corporate brand. The enterprise’s growth and development is strongly supported by the local government. South Korea is well-known as “one of the four economic tigers” in Asian region. Definitely, the development of its economy should be attributed to the functions of the government, which effectively works as a Micro-controller and coordinator in the domestic market (Rowley, & Bae, 2004).
More importantly, the local government has implemented series of...