Global Expansion Asia

Topics: South Korea, Marketing, Private label Pages: 25 (7637 words) Published: December 4, 2012
International Business Project
Ambrocio Consultants : Maarten Huuskes & Laura de Jong




Business Report

Introduction 1. Exploring the market 1.1 SWOT 1.2 South Korea as an interesting market? 1.3 The South Korean image 1.4 Comparison with other countries 1.5 Factors that affect competiveness 2. Organizational structure 2.1 Elements that have impact on the SBU’s 2.2 Most important stakeholders 3. Cultural differences 4. Alliance 4.1 Cooperation process 4.2 Timeline 4.3 Internet 5. Strategic Choices 5.1 Positioning 5.2 Mission statement 5.3 Global corporate strategy 5.4 Objectives 6. Leadership and Staff Motivation 6.1 Style of leadership 6.2 Hiring international staff 7. Branding 7.1 Branding strategy 7.2 Branding concepts 7.3 Pricing strategy 7.4 Enlarging brand credibility 7.5 Internet as marketing tool 8. Ethics and Social Responsibility 8.1 Ethical dilemmas 8.2 Servant leadership 8.3 Long term ethical behavior 8.4 Improve society 8.5 First year timeline Procedure of finding information Evaluation Peer assessment Resources

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Business Report


Business Report

Stated in this report is how Ambrocio Consultants advise the company Electric World on how to enter the East Asian market, while producing its products in South Korea. To set up a strategy, Electric World hired Ambrocio Consultants to realize the merger between DanGun and Electric World. The objective is to establish modern production facilities in South Korea and to penetrate the South Korean market, as well as East Asian market from South Korea. Ambrocio Consultants is a young consultancy company who is specialized in the Asian Market. The following paragraphs will give background information appropriate to the identified problem: How to set up and manage a local manufacturing and distribution process? Electric World’s biggest asset is their established reliable service organization. In Asia, people feel strong about a high level of service, an quality that only a few companies can offer in this market. The knowledge how to be a good service organization can be shared in South East Asia to manage and control the manufacture and distribution process. By creating one headquarter which is representing both companies; Electric World as well as Dan-Gun, the several strengths can be put together. Besides the headquarter, different SBU’s or working teams are created to work on product innovation / development, improve of service or marketing. These SBU’s are managed by an Asian or Dutch manager.

own private label, the household appliances which are known for their simplicity reliability and good price. The reason for this advise is because American brands and products are very popular in Asia and there is a great demand to luxury products from well known brands. Through licensing an American brand, Electric World can put a well known brand on their products. These products will be sold through as well online sales as physic concept stores. Research has shown that private labels in most Asian markets are still underdeveloped: it is found that the East Asian market has either low priced brands, produced in countries with the lowest production costs like China, or premium brands designed for a market who likes innovative and quality products. Moreover, the Asian consumers are largely brand loyal and have a long term acceptance. This means that a new private label has to build customer trust firstly, This however can take decades, especially for foreign companies. By using the trademark rights of an American brand, Electric World can capitalize on already established brand loyalty. Due to the disadvantages of entering the Asian market with a private label, Electric World has to spread its risk. Nowadays, Internet is one of the most booming marketing tools when it...
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