[국제경영] 이마트 중국시장진출 성공요인 분석(영문)

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2010.10.01 / 2019.12.24
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목차: Part Ⅰ. The Situation of E-Mart in Korea

1. General Information of E-Mart

2. Background of E-Mart establishment
3. Actions and Strategies of E-Mart
4. E-Mart vs. Wal-Mart and Carrefour
5. Performance of E-Mart in Domestic market
6. The New Opportunities of E-Mart in China
7. Analysis of Chinese distribution industry
 Entrance
 Consumer
 Rivalry
 Suppliers
 Substitute
8. Analysis of competitors in china
 Foreign capital competitive company
 Korean discount stores in China
9. Strategies of E-Mart in China
A. Localization strategy
B. Product strategy
C. Promotion strategy
D. Distribution strategy

10. Comparison of the strategy expanding abroad between E-Mart and Carrefour in China.
Part Ⅱ. Analysis of E-Mart

1. SWOT Analysis

● Strength

● Weakness
● Opportunity
● Threat
2. 5 Forces of E-Mart
3. Financial Analysis
A. Sales revenue
B. Operating profit margin
C. Total assets turnover ratio
D. Sales revenue in China
E. Operating profit in China
F. Current ratio
G. Debt-to-equity ratio
H. ROE (Return on equity)
Part Ⅲ. Recommendation
1. Enforcement of efficiency
2. Need for remodeling of aging stores
3. Need for possession of distribution centers in China to connect with online market and home shopping
4. Strengthening the core competence of domestic market – Focusing on Fresh food section
5. Differentiation of E-Mart China
Part Ⅳ. Appendix

본문내용: 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 of other people from management to general low level of staffs. Working atmosphere which is possible to respect and understand each other
 Stimulating curiosity: preparing new two or three products in each stand everyday.
 Operating the demonstration corner ⇒ attracting customer’s attention
 Give consequence to foods: limited consumption with remaining socialist living patterns.
 Chinese characteristics that they enjoy eating.
 Chinese who like sweet foods => enforcing sweets.
 Operating stores under direct managements: It is difficult to deliver fresh fruits, vegetables and fish to Shanghai because of the bad condition of distribution network. => keep many customers as patron.
 Each piece-centered sales: Because of the shopping patterns of Chinese who walk or ride bicycles, purchasing amount is so small.
 Providing working environment differentiated by Chinese company.
- Adopting an advanced training program to China.
- Increasing local R&D investment and strengthening to bring up R&D resources.
- Constructing the working environment differentiated from Chinese companies by introducing advanced corporate culture as well as technology transfer.
 Providing the opportunity to visit the head quarter.
 Digging out potential of local employees through various career development courses.

Foreign companies that were successful in entering into Chinese market choose the Joint venture.
It is advantageous for a Joint venture to transfer technology and management skills to Chinese local enterprises. Shortening the time for developing the distribution channel through a joint-venture with state-operated company
E-Mart: local state-owned company = 98:2 => by joint venture, solve the problem of Kwan-si and maintain the nondiscrimination policy against local employees.

B. Product strategy: Adopting differentiated pricing strategy and providing advanced services
 Providing products and services which are not accessible through Chinese companies.
 High pricing policy and securing luxurious store
 Selecting mass media carefully when driving promotion and advertising strategy.
 Constructing A/S network in order to back up the high class image
 Providing the products which are served only in E-Mart and are popular in Korean market, except the ratio of local products set by government pressure.
 Attachment of bar code and POS system: rapid calculation
 Guarantee of lowest price and 100% change and refund system
 Lingual ability of dispatched resources: same Asians, country of brother -> inducing friendly feeling
A. Introducing operating system and service differentiation
- Each product management system: By raising the efficiency of inventory control and sales management, higher ratios of product rotation and less cost of sales management and operating cost
→ Higher competitiveness

C. Promotion strategy: Continuous leaflet advertisement, raising recognition, advertisement in the same sized format.
 Original color of E-Mart, Yellow + Red =>unification effect
 Execution of events: Chinese characteristics enjoying events
 Discount events: every time and weekend new special discount products
 Various assortment of goods using wide space of store.
 Society-friendly marketing
 Return the corporate profits to the society by the form of donation
 By publicizing interest of the company to women’s human rights, appeal to Chinese women who have the ability to consume.
 Through the society-friendly sponsoring marketing, raising the image of corporate citizens.
 Active investment in welfare of employee such as stock option, my home system
 Local employment of 98.7% and superior compensation
 Executing localization strategy that china E-Mart is just Chinese company.

D. Distribution strategy: Corresponding strategy of Shanghai E-Mart according to the limitation of entering into Chinese distribution market.

10. Comparison of the strategy expanding abroad between E-Mart and Carrefour in China.

E-Mart Carrefour
Joint ratio 98:2
(aggressive investment) 55:45
(Focus on reducing investment)
Store size 3,820 Pyung
(display stand’s number of product in entrance) 1800 Pyung
Store location Subcenter of a metropolis (10M away from each other),
deficit of same facility in same area
∴ Focus on enlarging pies rather than simple competitio

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