In terms of the international air transport, the open skies policy implies freedom in the sky or opening the sky. In the normative respect, the open skies policy is a kind of open-door policy which gives various forms of traffic right to other countries, but on the other hand it is a policy of free competition in the international air transport. Since the Airline Deregulation Act of 1978, the United States has signed an open skies agreement with many countries, starting with the Netherlands, so that competitive large airlines can compete in the international air transport market where there exist a lot of business opportunities. South Korea now has an open skies agreement with more than 20 countries. The frequent flyer program (FFP) is part of a broad-based marketing alliance which has been used as an airfare strategy since the U.S. government's airline deregulation. The membership-based program is an incentive plan that provides mileage points to customers for using airline services and rewards customer loyalty in tangible forms based on their accumulated points. In its early stages, the frequent flyer program was focused on marketing efforts to attract customers, but now in the environment of intense competition among airlines, the program is used as an important strategic marketing tool for enhancing business performance. Therefore, airline companies agree that they need to identify customer needs in order to secure loyal customers more effectively. The outcomes from an airline's frequent flyer program can have a variety of effects on international competition. First, the airline can obtain a more dominant position in the air flight market by expanding its air route networks. Second, the availability of flight products for customers can be improved with an increase in flight frequency. Third, the airline can preferentially expand into new markets and thus gain advantages over its competitors. However, there are few empirical studies on the airline frequent flyer program. Accordingly, this study aims to explore the effects of the program on international competition, after reviewing the types of strategic alliance between airlines. Making strategic airline alliances is a worldwide trend resulting from the open skies policy. South Korea also needs to be making open skies agreements more realistic to promote the growth and competition of domestic airlines. The present study is about the performance of the airline frequent flyer program and international competition under the open skies policy. With a sample of five global alliance groups (Star, Oneworld, Wings, Qualiflyer and Skyteam), the study was attempted as an empirical study of the effects that the resource structures and levels of information technology held by airlines in each group have on the type of alliance, and one-way analysis of variance and regression analysis were used to test hypotheses. The findings of this study suggest that both large airline companies and small/medium-size airlines in an alliance group with global networks and organizations are able to achieve high performance and secure international competitiveness. Airline passengers earn mileage points by using non-flight services through an alliance network with hotels, car-rental services, duty-free shops, travel agents and more and show high interests in and preferences for related service benefits. Therefore, Korean airline companies should develop more aggressive marketing programs based on multilateral alliances with other services including hotels, as well as with other airlines.
The purpose of this paper is to investigate the differences between successful SMEs in Korea and German hidden champions, with respect to both strategic importance and performance of major competitive dimensions, and mode of technology development. Data were collected through survey and public databases, and the sample comprises successful SMEs located in regional area in Korea. The results show that Korean hidden champions are relatively low regarding specialization of business domain and globalization while German hidden champions have positioned in global niche market. It is also found that local firms utilize technology alliances actively for technology development while German hidden champions rely heavily on internal R&D as a primary source of innovation. Based upon these results, policy directions for fostering local hidden champions were suggested.
Paperless trade is a new trade paradigm that has innovated on traditional trade procedures, which relied on manual work in the past, and applied an IT-based e-document standard. To realize paperless trade in Korea, a lot of efforts have been made. Korea has overcome many difficulties, a lack of awareness, trials and errors, etc. at the initial introduction stage and strived to establish a stable infrastructure through the government's policy support and active cooperation with the trade business communities and related organizations. Now, Korea became a well-known leader in IT industry, especially in the paperless trade infrastructure and strategic policies. The one-stop trading system named 'uTradeHub' is operated by a paperless trade service provider, Korea Trade Network(KTNET). uTradeHub includes trade finance and settlement, customs clearance and export and import logistics, improving trading procedures and reducing related expenses. Private-Public joint efforts from Korean government and private sectors which have respectively fulfilled their role and function with market-oriented practical policies and strategies has lead Korea a world leading country in paperless trade. Moreover, Korea expended its efforts to the global areas. Korea has started to activate multi-national paperless trade alliances such as PAA(Pan-Asia e-Commerce Alliance), ASEAL(Asia Europe Alliance for Paperless Trading) as well as established the bilateral cooperative networks with China and Taiwan. The one-stop trading system, uTradeHub should keep close cooperations between nations since trade itself is implemented in a cross-border ways. In the near future, it is expected uTradeHub can achieve best results in the simplification of procedures and cost savings when an international linkage is completely established with international cooperations.
This study is research on the snack culture and fast fashion. The purpose of this study is to examine the common attributes of snack culture and fast fashion as a cultural phenomenon. The following results were obtained: First, snack culture and fast fashion have attributes of 3S represented by Speed, Short time, and Simplification. Second, snack culture and fast fashion meet consumer demands by fun and various contents and a variety of designs, respectively. Third, although snack culture has developed on the basis of information technology, fast fashion has grown based on the technological innovation of business, organization, and distribution system. Fourth, snack culture communicates with the world through opening and sharing to be globalize a context, and fast fashion is globalized to multinational corporations by increasing sales and development of scale. Fifth, snack culture has a synergistic effect by maximizing the multiple interactions through social campaigns based on the attribute to communicate with many-to-many relationship. In addition, fast fashion produces a synergistic effect through collaborative strategic alliances.
Currently, most of big IT companies attempt to penetrate into Internet portal industry aggressively in order to expand their channels(sale, distribution, marketing, R&D, and so on) and to acquire competitive advantages. Existing Internet portals also have become larger and more complex with continuous developments. Therefore, it is necessary to acquire competitive contents to survive the extreme competition and to satisfy diverse needs of customers. In this paper, we have done qualitative analyses on the cases of domestic and foreign major Internet portals which have acquired contents through of M&A and strategic alliances. In our analyses, we identify five factors crucial to the successes and failures of Internet portals. From the analyses, we find that the acquisition of UCC based contents and subscribers over the critical mass point are the two most important factors that should be simultaneously satisfied for the successful M&As. Additional analyses suggest how to acquire synergy effects from successful M&As.
This study outlines the current state of logistics in the country will be examined. In particular, the country's main development strategy, logistics 3PL as a development strategy is to look about. For the development of 3rd party logistics companies, shippers, and government efforts are needed. Looking at aspects of corporate strategy, First, the logistics company provides a benefit to the shippers should be able to. Second, the logistics company providing logistics services to create added value should be. Third, the integration of customized logistics services and logistics systems must be able to provide. Finally, a positive investment in human resources is needed. Fifth, the logistics must be enabled strategic alliances between companies. Sixth, the introduction and application of advanced Logistics should be actively. Corporate strategy perspective, shippers and 3rd party logistics companies that need to cooperate closely. Finally, The government should strive for the growth of 3rd party logistics companies.
The distribution sector is affected by a wide range of regulations. Many of these are related to health and safety, others are related to urban planning and environmental issues, whereas some mainly have an economic basis. But, regulations many be unduly restrictive, in which case they can drive up costs and ultimately prices, or they may, in some cases, reduce consumer choice. Unduly restrictive regulations could also increase costs indirectly, by reducing competition and thus lead to lower productivity growth. In the past few years, distribution sector has gone through drastic changes due to deregulation and market opening. Implementation of regulatory reforms served as an opportunity to change laws and systems which had been an obstacle to development of distribution sector. Market opening of distribution sector became a turning point to promote competition among domestic and foreign firms. However, for small and medium scale of the typical retail enterprises which were in no position to compete in terms of prices, additional facilities, and services, faced a threat of diminished trading area, and even of their existence. Because, large firms may have greater market power than small firms, as they can more easily extract favorable terms when procuring goods, and may also be able to deter entry by advertising outlays or access to the best sites. In addition, larger chain stores armied with sufficient capital dominated trading area and reduced customer's welfare by abusing their monopoly power when competing with other shops, and are often cited as an example of adverse effects of local monopoly. In order to minimize such adverse effects and to foster competition, regulatory reforms in distribution sector should set its goal to promote sound and stable distribution activities through market principle and restoring competition principle, and ultimately to boost customers welfare. Therefore, deregulation in distribution sector should be implemented in a way to promote customers welfare, eliminate entry barriers, and expand competition principle such as productivity and efficiency competition. However, it should be also recognized that deregulation of system alone is not enough to develop the distribution sector. To compete in a increasingly concentrated industry, small enterprises increasingly engage in co-operative arrangements, such as buying groups, strategic alliances or franchise agreements.
Many economists and policymakers regard the ratio of R&D investment to GNP to be a good indicator of a nation's technological capabilities. Consequently, their major policy recommendation to promote technological development is a rapid expansion in R&D investment. However, a low R&D ratio does not necessarily mean less efforts at technological advancement since the composition of technologies to be developed varies depending upon the stage of economic development. Technology policy to improve the international competitiveness of domestic industries should be based on the stage of economic development and present technological status rather than on a simple comparison with advanced countries. At Korea's stage of development, maximizing the efficiency of R&D investment is more important than enlarging the size of the investment. Strategic alliances between domestic firms and foreign enterprises should be encouraged to save time and costs involved in acquiring new technologies and learning how to use them. The government should establish institutional devices to stimulate private enterprises to internationalize their business activities such as R&D, production, and marketing. The government should also promote the development of domestic and international R&D networks, which can serve as the infrastructure for technological innovations.
For the last 70 years, the U.S.-led bilateral security system, or "Hub-and-Spokes" system, has been applied to Northeast Asia, and the system has been successfully settled in terms of stability and economic achievements of the region. Given the increasing complexity of the security environment of East Asia, it is plausible to consider the possibility of a security system shift from bilateral alliances to collective security. In order to analyze the driver of collective security system, this study developed three factors of formation and development of collective security system - main threat, intensity of the threat, and confidence among countries in the system - by reviewing international political theories related to security cooperation. Comparing the formation, development, and achievements of NATO and SEATO, the study figures out that the existence of the main threat, the high intensity of the threat, and the strong confidence among countries in the security system are the primary drivers for a successful collective security system. Based on the result, the study also analyzed the possibility of a security system shift in East Asia. Considering contemporary international conflicts such as U.S.-China strategic competition, Russia-Ukraine War, and growing threats posed by North Korean nuclear and missiles, the study anticipates that the necessity of a collective security system that will replace the current security system of the region would arise. Still, although some issues between countries should be overcome, the growing intensity of the threats will promote cooperation among countries by improving their confidence.
Journal of the Korea Academia-Industrial cooperation Society
/
v.17
no.10
/
pp.666-677
/
2016
This study analyzes determinants of strategic marketing alliances' performance using 'continuous use intention' of consumers in the Korean credit card industry. Specifically, this study aims to provide comprehensive and synthetic understanding of these factors divided into firm- level and consumer- level variables. Thirty alliance cards were chosen randomly. For firm- level data, managers from the thirty selected cards were interviewed concerning their respective firm and alliance operation. For collection of consumer- level data, 610 card holders from these thirty cards were surveyed concerning card benefits, benefits information, brand image, and continuous use intention. The hierarchical linear model (HLM) was employed to analyze this multi-level data, yielding the following results: First, consumers identified three factors that positively influence continuous use intention. Second, with respect to firmlevel factors, alliance partner's marketing capability is not positively related to intention, whereas fit of alliance goal influences consumer's continuous use of card. Third, contrary to expectation, the positive interaction effects between consumer level variables and firm level variables were found to be not present.
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