Case Name :      Home Plus: Riding the Korean Retailing Rollercoaster

Authors :           Youngwoo Lee, Martin Hemmert

Source :             Ivey Publishing

Case ID :            W13140

Discipline :        Strategy

Case Length :    12 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In the late 1990s, multinational retailing giant Tesco selected a joint venture with the Samsung Group as its market entry strategy into South Korea and created a new brand, Homeplus. Subsequently, the management of Homeplus implemented various policies aimed at localizing the business while also introducing business practices from Tesco’s british headquarters. It invested in growth and diversification through large discount stores offering an “all in one spot” shopping experience, small-sized super-supermarkets, private brands and online shopping. At the same time, the Korean retailing industry had become much more dynamic as competition intensified between various types of market players, including strong competitors affiliated with local business groups. Homeplus needs to rethink its position in a highly challenging market environment.