Subject category:
Marketing
Published by:
International Institute for Management Development (IMD)
Version: 24.06.2003
Length: 12 pages
Data source: Field research
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https://casecent.re/p/11965
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Abstract
This is the first of a two-case series (IMD-5-0527 and IMD-5-0528). The series is about designing and implementing a market entry strategy and about ''breaking the rules'' (ie ignoring industry norms and orthodoxies). Daewoo is a Korean company seeking rapid international expansion. It is entering the UK car market with the aggressive goal of achieving 1% market share within three years. Daewoo had to define several key launch tactics including distribution, service, pricing and advertising strategy. Case (A) presents the situation and requires a student to develop a market entry strategy. Case (B) describes Daewoo''s strategy: defining the offering as car ownership instead of as car performance. It also describes how Daewoo set up its own retail outlets and promoted the offer with a limited budget. Daewoo achieved a 0.92% market share within 12 months and became a competitive threat to the established dealer network. Case (B) also presents the next dilemma for Daewoo: How, in September 1997, to launch the next round of cars during a time when its success is slipping and customers want more focus on car performance.
About
Abstract
This is the first of a two-case series (IMD-5-0527 and IMD-5-0528). The series is about designing and implementing a market entry strategy and about ''breaking the rules'' (ie ignoring industry norms and orthodoxies). Daewoo is a Korean company seeking rapid international expansion. It is entering the UK car market with the aggressive goal of achieving 1% market share within three years. Daewoo had to define several key launch tactics including distribution, service, pricing and advertising strategy. Case (A) presents the situation and requires a student to develop a market entry strategy. Case (B) describes Daewoo''s strategy: defining the offering as car ownership instead of as car performance. It also describes how Daewoo set up its own retail outlets and promoted the offer with a limited budget. Daewoo achieved a 0.92% market share within 12 months and became a competitive threat to the established dealer network. Case (B) also presents the next dilemma for Daewoo: How, in September 1997, to launch the next round of cars during a time when its success is slipping and customers want more focus on car performance.