LOCAL Focus
Balance between Globalization and Localization
Society contribution
Uncontrollable external environment
Different culture, but the same policy
Low competitive location
Most of them are in local area
Failure to notice Korean customers’ Needs
Low cost product ->Against Value
(Premium / clean shopping environment)
Display, high selling, Warehouse style
Less
A. Localization strategy: Success and failure of foreign store operation is determined by how closely it could approach to their culture and language. Focused the point that Chinese E-Mart Shanghai store is right Chinese enterprise and it’s not others because it is different from theirs.
Being tried to change the naming of the job title which co-workers could see each other in the viewpoint o
local broadcasting.
It was also restricting the competition of Skylife and Social Operators.
There were violations of Fair Trade Law, Article 19, clause 1, number 8 and Article 26, clause 1, number 1
* 공정거래법
제19조 (부당한 공동행위의 금지) ①사업자는 계약·협정·결의 기타 어떠한 방법으로도 다른 사업자와 공동으로 부당하게 경쟁을
failure can occur because of asymmetric information. Universities can spend money earned through donation in an inefficient way because it is difficult for the government and people to know how the university spends contribution and it is hard to monitor university’s behavior. It is called moral hazard. “Moral hazard is a special case of information asymmetry, a situation in which one party i
Ⅱ. BODY
Ⅱ.1. Cause of failure
LGE HR’s failure is because of hasty decision made by management. Management pursues HR strategy by force ignoring LGE culture which is unprepared to globalization internally enough. It makes two problems. One is only about foreign executives and the other is foreign executives and local residents in common.
Ⅱ.1.1. Problem to foreign executives.
Fir
Local Brand Market Share 5%
2001-2002
- Local Brand Market Share up to 14%, 30% in 2002
Ericsson’s Failure
- Market share was decreased
+ Ericsson
1876 - L. M. Ericsson & Co founded in Sweden
1890 - Start to Global Business
1897 - 19% of total sales in Sweden, 81% in other country
1999 - Own 60 factories in International market
2003 - 57,600 employe
국제마케팅의 표준화
- 국가별로 차이가 없이 전세계적으로 동일한 마케팅 프로그램을 통하여 접근하는 방식
국제마케팅의 현지화
- 개별 국가 시장마다 현지 소비자의 반응, 경쟁상태 및 제반 정치, 경제, 사회, 문화적 환경을 고려하여 현지에 특화된 마케팅 전략을 수행하는 방식
* 코카콜라
188
failure was its ignorance of the distinctive taste of Korean customers.
For its survival, Wal-Mart will be reborn with a new brand name, Glo.co and its new slogan “Taste the world” that will definitely revise its old image. Through its new strategy of “glocalization,” Wal-Mart will be extending its market to Glo.co and will focus on both local and global goods that will reach consume
Focusing on R&D
- Using leading-edge ideas from Japan Market
- R&D labs with global team
Success in their domestic market
First trial into the global market – failure
Applied existing core competencies without considering local taste
Second trial into the global market - success
Modification of strategy tailored to local taste
Expand further? If so where?
PD/NO Matrix
National organizations (NOs)
▽
financial, legal and administrative matters
Product division(PDs)
▽
development, production and global distribution