Lg Electronics

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HOMEPLUS: RIDING THE KOREAN RETAILING ROLLERCOASTER Submitted by: Cananea, Franco Rivas M. Mohammad Yasser, Mahter A. Ortega, Trisha C. Sescon, Michael Andre A. Wahab, Irene L. Submitted to: Mr. Francis Arroyo January 9, 2016 HOMEPLUS: RIDING THE KOREAN RETAILING ROLLER COASTER Problem Statement How can Homeplus address the current conflict against Korea’s small store owners while continuously developing the company’s economic growth and performance? Objectives To maintain Homeplus’ growth and competitive strength, taking into consideration the various changes in the Korean retail market (e.g. proposed regulatory bills). Brief Description of the Case Tesco, a multinational retail giant from Britain, engaged in a joint venture with…show more content…
In line with the company's contribution to local society, they received many awards such as the Green Management Award and Eco-friendly Management Award in 2004. Homeplus became number one in supplying online groceries in Korea by 2003. * Weaknesses * Quality Management. As Homeplus expanded its private product line to a wide range of products, their quality management had become more complex than ever. * Management communication. Management decision take time because not all of them are in Korea, therefore, it has to be communicated to London and then back again. There is difficulty in showing the management heads situated in London what is happening in Korea if they are personally not there. * Lack of flexibility. This means that they lack flexibility to start a new business or try a new store format compared to their main competitors. * No option to buffer business risk using other retail channels. Compared to the competition, Homeplus do not have department stores to offset its loss on discount stores. * Opportunities * Advanced online home delivery services. It had signed a contract with Safeway in the United States to develop its home-shopping service. * Customer loyalty program. The company secured a high level of customer loyalty due to its membership program and its general approach to customizing services to the needs of every customers. * Expansion. Since there are still many business sites available for
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