1. The key strengths were the presence of chaebols and the government’s industrial policy. Korean government subsidized chaebols. They supported FDI enabling to create joint ventures with leading foreign electronics companies through which they wanted to secure technology growth. Government encouraged firms to invest in local R&D by providing initiatives. They created research infrastructure, industry promotion councils and cooperative institutions to ensure technology access to all companies in Korea. Government enacted the national education policy to increase the number of students and experts in the technology field. Korean companies used OEM to tap developed markets. Companies learned from their joint venture partners about these markets before they entered with their own labels. Korean market was also known for its low labour costs, value-added products to be accessed to produce more innovative products to enter new developed markets later on. 2. LG started under OEM mode, later introduced the products under its own brand which wasn’t successful in developed-country market (in US).
They remade its strategy by building brand awareness and built success on R&D and technology investments in developing markets. LG’s strategy was long-term focused. In Brazil and Russia LG decided to stay despite the unfavorable economic situation and oppositely expanded their presence. LG progressively built its own distribution channels and customer service links to be more easily approachable to customers by expanding to more rural and remote areas. LG raised brand awareness by sponsoring social events. In Brazil sponsored football club, in India cricket, in Russia culture marketing and cooking events. LG emphasized social welfare; in China provided free sanitary masks, in India set up medical clinics and subsidized school education. LG’s strategy in BRIC was long-term with emphasis on local market. LG leveraged on finding the voids in each market and focused on cultural uniqueness and incorporation of local traits into country product portfolios.
The Essay on International Market Products Chinese Companies
1. INTRODUCTION There is no doubt that England acts an important role in the world! s market system, especially in Europe. But it seems that English products have little effects on Chinese market. To research the influence of English companies and products in China, I make a hypothesis that is! ^0 there is just a few Chinese consumers realize that English companies and products are famous in ...
They used the sponsoring of social events or showing corporate responsibility by building brand reputation. LG’s strategy was mixture of both the adapting business model by understanding local market as they customized products, majority hired people were locally based, adapted brand awareness according to local laws (Brazil), emphasized social awareness and localized R&D from home facilities. They also changed institutional context; they build up new distribution channels in remote areas and supported local R&D to address local needs and cooperated with government to defeat ‘smuggling problem’ (Brazil) or changed social welfare.
3. LG’s success was based on localization strategy with emphasis on designing products tailored to country market, building brand awareness, customer loyalty and own distribution channels. They also strived to provide good quality products with warranties. LG trained local people who were aware of local needs and customized the products respectably. The important feature was differentiated position, long-term dedication and belief in market’s potential even in unfavorable economic situation. These advantages can be used in developed countries in terms of differentiation, however are not transferable due to more stable economies, huge presence of competitors, indicating difficulties to find ‘gaps’ and tap right niches in the market.
The Essay on British Market Mcdonald Company Brand
McDonald's, What Does It Mean to You? McDonald's Corporation has held a prominent position in the fast-food market for much of its existence. A person would be hard pressed to find consumers who would not readily recognize the famous golden arches, as the company has expanded its market globally. However, as global consumer tastes shift to a more heath-conscious public which cares less about " ...
