• Title/Summary/Keyword: international market entry

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A Case Analysis of Entry in Global Fashion Market : The Case of Zara and Uniqlo (해외 패션시장 진출 사례분석: 자라와 유니클로를 중심으로)

  • Kim, Hyojung;Kwon, Ki-Hoon
    • International Commerce and Information Review
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    • v.15 no.4
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    • pp.509-532
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    • 2013
  • This paper analyzed the functional global entry process of firms by real business cases. We reviewed the global firm Zara and Uniqlo's functional global entry process by Malnight (1995) four-step model which is composed of appendage, participation, contribution, integration stages. We found that both Zara and Uniqlo made successful internationalization using integrated global value chain. However, Zara maintained the home-initiated internationalization strategy on whole value chain, Uniqlo operated subsidiary-initiated functional strategy in specific value chain activities. This study suggests that internationalization occurs at the level of the function, rather than the firm. In addition, this study suggests practical implication to Korean fashion firms that global firms should maintain the functional global entry strategy basing on firm's internationalization steps.

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The Effect of Internationalization Speed and Scope on Performance in Korean SMEs (한국 중소기업의 국제화 속도와 범위가 성과에 미치는 영향)

  • Yang-Pok Rhee
    • Korea Trade Review
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    • v.48 no.4
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    • pp.1-21
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    • 2023
  • This study investigates the effect of internationalization speed and scope on the performance in Korean SMEs. Through empirical regression analysis, the following results were identified. both the time-based speed of internationalization and the scope of internationalization by a geographical perspective have significant positive impacts on international performance. This implies that the earlier and wider in global market expansion, the more positive the effect on performance. It was also confirmed that the scope has a significantly greater effect on international performance than speed, which suggests that the geographical national scope is more meaningful for international performance than the initial foreign market entry speed. In addition, the characteristics of the CEO's international experience strengthened the positive relationship between internationalization speed and performance. In conclusion, it means that the internationalization speed and the scope after foreign market entry should be managed in a balanced way to enhance the level of SMEs internationalization.

Introduction of InsurTech and Analysis of Re-Entry into Chinese Insurance Market for Korean Insurance Companies (인슈어테크 도입과 한국 보험회사의 중국 보험시장 재진출 전략 분석 연구)

  • Hwang, Ki-Sik;Choi, Sin-Young;Kim, Se-Jin
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.22 no.9
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    • pp.1147-1152
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    • 2018
  • In the recent, Chinese insurance market has taken a introduction of InsurTech. It is a combination of insurance and fintech. This means that the policyholder design their own insurance and take out the policy on-line without insurance planner. This trend is remarkable issue. Growth rate of InsurTech in China have significantly been growing. In addition, Chinese insurance market has kept generally stable and fast growth rate, although Chinese forecasting economic growth is subject to massive uncertainties. Nevertheless, the increase in the number of Korean insurance companies fails to settle into Chinese insurance market due to lack of awareness about newness of Chinese insurance market. Moreover, Korean insurance company in China or planning to enter are not prepared for InsurTech yet. Chinese insurance market is valuable for Korean insurance companies. This paper suggests implications of re-entry into Chinese insurance market to Korean insurance companies by analyzing policies which could make environment to endorse Chinese insurtech and case of Chinese insurtech companies.

The effect of creativity, absorptive capacity and strategic orientation on the distribution strategy of foreign market entry : Focused on Game Industry (해외시장 진입전략에서 창의성과 흡수역량, 전략적 지향성이 미치는 효과에 대한 연구: 게임산업을 중심으로)

  • Park, Young-Eun
    • Review of Culture and Economy
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    • v.17 no.2
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    • pp.29-62
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    • 2014
  • Game industry, one of cultural-content industry which is considered as a typical knowledge-based industry and creative industry, is not like the overseas expansion of traditional manufacture, and has different strategy and performance of export expansion through product or project-based strategy. Therefore, it should be approached by each content unit, and necessary to look at the factors that make their decision makings of foreign market entry vary. This study focuses on discovering creativity, absorptive capacity and strategic orientation(market orientation and innovation orientation) which affect the difference of distribution's decision making of entry into foreign market in game industry This paper examined 252 cases of online games in order to investigate creativity, absorptive capacity and strategic orientations for each foreign market and what entry type(among licensing, joint distribution, exclusive distribution) they chose according to the products developed in team level. This helps us analyze the factors affecting market orientation and innovation orientation in the perspectives of creativity and absorptive capacity in comprehensive way, and notice the phenomena which use different foreign distribution strategy though there are company incorporated abroad and their results. This study supplements the limit of the existing Resource-Based View, Resource-Dependent View, and traditional international business theories such as Transaction Cost Theory or OLI Paradigm(Eclectic Framework), and proves how company could reduce asymmetry of uncertainty and information in creative industry and whether they accomplish successful overseas expansion according to strategic orientations.

Korean Fashion Firms' Entry into Foreign Markets: Empirical Analysis of Determinants of their Choice of Foreign Direct Investment Modes (한국 패션기업의 해외시장 진입방식 연구: 해외직접투자 유형의 결정요인 분석을 중심으로)

  • Kim, Hye-Yeong;Ra, Won-Chan
    • Korea Trade Review
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    • v.42 no.1
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    • pp.189-215
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    • 2017
  • This study analyzes the determinants of the choice of foreign direct investment mode by Korean fashion firms in entering into foreign markets. We have established hypotheses regarding their choice among three classical entry modes including a wholly-owned subsidiary, a joint venture and an M&A based on factors such as the investing firm's size, international experience and international strategy type, host market potentials, cultural distance and foreign investment risk. By conducting multiple logistic regression over secondary data on 100 Korean fashion firms, we found that all variables but cultural distance were statistically significant. The results may contribute to advancing international business theory on the fashion industry and developing fashion firms' global strategy.

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Socialization and Teen Magazines: What are the Messages?

  • Kim, K.P. Johnson;Mun, Jung-Mee;Ju, Hae-Won;Kang, Ju-Young M.;Kim, Hye-Young;Wu, Juanjuan
    • International Journal of Costume and Fashion
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    • v.11 no.2
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    • pp.1-12
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    • 2011
  • As fashion magazines are important socialization influences, our purpose was to examine the content of articles in two teen magazines: one with a long publication history (Seventeen) and one relatively new market entry (Teen Vogue). We addressed the following questions: (1) What are the patterns of content of the feature articles? (2) How frequently is this content related to appearance management or fashion consumption? and (3) What, if any, differences exist in contents between the traditional teen magazine and the new market entry? A content analysis of 1,191 articles published during 2008 and 2009 revealed the largest percentage of content in both magazines was fashion. Other than the topic of fashion, Seventeen concentrated on teen life issues whereas Teen Vogue focused on celebrities. Understanding these are fashion publications, we suggest there are opportunities for both magazines to allocate further attention to other issues in the lives of teens in addition to beauty and consumption.

Benign Neglect or Malign Select?: Entry Cost to GATS/WTO

  • Sung, KeukJe
    • East Asian Economic Review
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    • v.22 no.2
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    • pp.117-140
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    • 2018
  • WTO was established in 1995 and as many as 36 new members joined WTO until December 2017. Thus it would be interesting to see if new members have committed higher or lower levels of market opening compared to the original members. In this regard, a sophisticated scoring scheme is needed to quantify market opening commitments. After proper econometric model is established for the original members, same model can be applied to the new members for comparison. It was found that new members committed a much higher level of commitment than the original members. In addition, it was also found that transition economies committed higher levels than the non-transition economies. More interesting finding is that among the new members, the larger the economies or the larger the trading volume are, the closer was the level of commitment to the predicted level. Then the question is whether this difference was due to benign neglect by the new members or due to malign select by the original members.

The strategic behaviors of incumbent pharmacy groups in the retail market of pharmaceuticals in response to the entry trials by the online platform firms delivering medicines - A perspective of market entry deference model in game theory (온라인 의약품배송플랫폼기업의 시장 진입 시도에 대한 기존 의약품 공급자의 전략적 행동 - 게임이론의 시장진입 저지 모형 관점)

  • Lee, Jaehee
    • The Journal of the Convergence on Culture Technology
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    • v.8 no.4
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    • pp.303-311
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    • 2022
  • Recently the telemedicine platform firms which have been temporarily permitted since COVID-19 outbreak have increasingly provided online prescription drugs delivery, causing concerns among incumbent providers of medicine, some of whom began to take aggressive actions again them. In this study, using game theoretic market entry - deterrence model, we show that although the incumbent medicine provider can effectively deter entry by the telemedicine platform firms by its preemptive action, accommodation could be a optimal action when telemedicine platform firms already have penetrated the market with their being permitted to do business due to the COVID-19. However, for the incumbent to cooperate for the successful change in the retail market for medicines, policies like placing a ceiling on the maximum number of taking prescriptions by the pharmacists a day in the telemedince platform network, providing favorable exposure of community pharmacists on the telemedicine platform user interface, and allowing community pharmacies to participate as shareholders of the telemedicine platform firms in its initial public opening of capital, are suggested.

Foreign Entry Strategies for Korean Fishery Firms (한국수산업의 해외진출전략에 관한 연구)

  • 김회천
    • The Journal of Fisheries Business Administration
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    • v.15 no.1
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    • pp.131-153
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    • 1984
  • Fishery resources are still abundant compared with other resources and the possibility of exploitation is probably great. The Korean fishery industry has grown remarkably since 1957, and Korea is ranked as one of the major fishery countries. Its of fishery products reached the 9th in the world and the value of exports was 5th in 1982. But recently a growth rate has slowed down, due to the enlargement of territorial seas by the declaration of the 200 mile, Exclusive Economic Zone, the tendency to develop fishery resources strate-gically in international bargaining, the change in function of the international organizations, the expansion of regulated waters, the illegal arrest of our fishing boats, the rapid rise in oil prices, and the fall in fish prices, the development of fishery resources as a symbol of nationalism, the fishing boats decreptitude, the rise of crew wages, regulations on fishing methods, fish species, fishing season, size of fish, and mesh size, fishing quotas and the demand of excessive fishing royalties. Besides the the obligation of coastal countries, employing crews of their host countries is also an example of the change in the international environment which causes the aggravation of foreign profit of fishing firms. To ameliorate the situation, our Korean fishery firms must prepare efficient plans and study systematically to internationalize themselves because such existing methods as conventional fishing entry and licence fishing entry are likely to be unable to cope with international environmental change. Thus, after the systematic analysis of the problem, some new combined alternatives might be proposed. These are some of the new schemes to support this plan showing the orientation of our national policy: 1. Most of the coastal states, to cope with rapid international environmental change and to survive in the new era of ocean order, have rationalized their higher governmental structure concerning the fishery industries. And the coastal countries which are the objectives of our expecting entry, demand excessive economic and technical aid, limit the number of fishing boats’entry and the use of our foreign fishing bases, and regulate the membership of the international fishery commissions. Especially, most of the coastal or island countries are recently independent states, which are poorer in national budget, depend largely on fishing royalties and licence entry fees as their main resources of national finance. 2. Alternatives to our entry to deep sea fishing, as internationalization strategies, are by direct foreign investment method. About 30 firms have already invested approximately US $ 8 million in 9 coastal countries. Areas of investment comprise the southern part of the Atlantic Ocean, the Moroccan sea and five other sea areas. Trawling, tuna purse seining and five other fields are covered by the investment. Joint-venture is the most prominent method of this direct investment. If we consider the number of entry firms, the host countries, the number of seas available and the size of investment, this method of cooperation is perhaps insufficient so far. Our fishery firms suffer from a weakness in international competitive ability, an insufficiency of information, of short funds, incompetency in the market, the unfriendliness of host coastal countries, the incapability of partners in joint-ventures and the political instability of the host countries. To enlarge our foreign fishing grounds, we are to actively adopt the direct investment entry method and to diversity our collaboraboration with partner countries. Consequently, besides proper fishing, we might utilize forward integration strategies, including the processing fied. a. The enterprise emigration method is likely to be successful in Argentina. It includes the development of Argentinian fishing grounds which are still not exploited in spite of abundant resources. Besides, Arentina could also be developed as a base for the exploitation of the krill resources and for further entries into collaboration with other Latin American countries. b. The co-business contract fishing method works in American territorial seas where American fishermen sell their fishery products to our factory ships at sea. This method contributes greatly to obtaining more fishing quotas and in innovation bottom fishing operation. Therefore we may apply this method to other countres to diffuse our foreign fishing entry. c. The new fishing ground development method was begun in 1957 by tuna long-line experimental fishing in the Indian Ocean. It has five fields, trawling, skipjack pole fishing and shrimp trawling, and so on. Recently, Korean fisheries were successful in the development of the Antarctic Ocean krill and tuna purse seining. 3. The acceleration of the internationalization of deep sea fishing; a. Intense information exchange activities and commission participation are likely to be continues as our contributions to the international fishery organizations. We should try to enter international fishery commissions in which we are not so far participating. And we have to reform adequately to meet the changes of the function of the international commissions. With our partner countries, we ought to conclude bilateral fishery agreements, thus enlarging our collaboration. b. Our government should offer economic and technical aids to host countries to facilitate our firms’fishery entry and activities. c. To accelerate technical innovation, our fishery firms must invest greater amount in technical innovation, at the same time be more discriminatory in importing exogeneous fishery technologies. As for fishing methods; expanded use of multi-purpose fishing boats and introduction of automation should be encuraged to prevent seasonal fluctuations in fishery outputs. d. The government should increases financial and tax aid to Korean firms in order to elevate already weak financial structure of Korean fishery firms. e. Finally, the government ought to revise foreign exchange regulations being applied to deep sea fishery firms. Furthermore, dutes levied on foreign purchaed equipments and supplies used by our deep sea fishing boats thould be reduced or exempted. when the fish caught by Korean partner of joint-venture firms is sold at the home port, pusan, import duty should be exempted.

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Market Entry Decision Model in Global Construction Market Using Real Options Game (실물옵션 게임을 활용한 해외건설시장 진출모형에 관한 기초연구)

  • Kim, Du-Yon;Kim, Byoung-Il;Han, Seung-Heon
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.652-655
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    • 2007
  • Due to stagnation of domestic market, increasing number of domestic construction companies started to make inroads into foreign market recently. Yet compared to domestic market, there are much more risks in the foreign market which companies may confront. So deliberate and rational decision making skills are required. Accordingly, there has been many researches which analyzed the risk of individual markets and also studies covering decision support models. In this study, we suggest a model concerning financial issues when branching out into a new market, specially in the construction companies' point of view. For this we used a real options game which shows real competition status of a new market and deduced a feature of that market, Upon these results, we also suggest a model which helps firms to decide whether investing in the expansion is smart action or not. The model developed in this study is made in specific circumstances of limited conditions. The future study makes more realistic models considering subjects like disproportion in information and generalization of competing companies.

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