China has been experiencing huge innovation in its economic system until the present time. The biggest change during this period istointroduce the free market system andto allow its economy to be operated by themarket forces. In addition, China has been promoting foreign investments inChinaandinternational trade with other countries. As a result ofinnovative changes in its system, Chinese
of current market condition is essential to create a suitable strategy for its expansion.
In this report we analyze AMOREPACIFIC and give a brief company overview. After that, we suggest the background which motivated it to expand abroad and show the challenges to global market. Also, our case study includes AMOREPACIFIC’s entrance to foreign cosmetics markets which are France, Chinaand US.
of consumers in that market, and likely future wealth of consumers, which depends on economic growth rates.
Consider living standard and Economic growth
Although some markets have much consumers, such as China, Indea, Indonesia, we have to consider their living standard and economic growth. In this sense, ChinaandIndia is very attractive foreign market because they are growing rapidly wh
andinvestment, in 2000’s, Samsung become the dominant player in semiconductor industry. It would be worthwhile to look over how did Samsung succeeded inthemarket, even as a late-mover, obtain competitive advantage, and keep the advantage.
Q1. What kind of advantage aretheChinese entrants seeking? How close arethey to achieving that advantage?
TheChinese entrants’ core strategy is t
the exchange rate policy has been sustainable like Europe’s exchange rate policy inthe early 20th century and Japan’s exchange rate policy after World War II. Recently, Economic purposes such as restoring slowdown of economy due to financial crisisand recovery of trade deficit are combined with political purpose and retaliatory currency manipulation inchinaand U.S. is on the rise. Extreme
Chinese has similar physical characteristics
cause they are oriental
2. Korean andChinese has similar eating habit,
it’s important to select nutritional ingredients
3. Chinese are unwilling to buy Japanese food after nuclear accident
1. It is hard to find powdered milk advertising from ILDONG
-> low brand awareness
2. Consumers cannot buy their product in common supermarket
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in local business zone
Deepening of price competitiveness around Congestion region
Slow growth of business of department store
China’s rapid growth through market opening
Foregin funded enterprise check & price competitiveness securing
Capital and global distribution network of foregin company
The potentional to threaten themarket position of E-mart is high
Preparation against
In Asia and other emerging markets, we will push to advance, andinthe developed markets, we will raise our image by focusing on the prestige brand lines such as Sulwhasoo and AmorePacific. That is our global company strategy.
Amore Pacific is particularly concentrating on China, French andthe Americas as aimed areas. By entering these regions, they are achieving their global vision.
Chinais very important country for business and trade. Now, After 20 years the establishment of diplomatic relations between Korea andChina, How do we performed business inChina for success inthe cultural characteristics and communication view points? Our group supposed we started coffee franchises(Caffe Benet) in Beijing, China. And we looked for informations and knowledges about Chinese cul
inChina used silk to differentiate themselves. For hundreds years, the right to wear silk was reserved for the emperor andthe highest dignitaries. Later, it gradually extended to other classes of both Chinese and European societies.
Meaning of silk was not just a piece of fabric. It was a symbol of wealth, privilege and power. Silk oftoday is not as powerful as old days. However, there are n