Texas Instruments in South Korea Essay examples

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Texas Instruments in South Korea Understanding a target market’s needs and desires can assist companies with tailoring their offerings in the name of profit. Texas Instruments (TI) had been business since 1930. During this time they have reinvented their offerings to remain a viable business entity throughout the decades. Their ability to stay ahead of the change curve has translated into a current market cap value of approximately $47 billion ("Yahoo finance," 2014). Whether it is calculators, semiconductors, software or education materials TI has been able to continually transform itself using a strategy predicated on “risk taking and innovation” ("Texas instruments," 2014). It is this culture of risk taking that has TI attempting…show more content…
Foreign direct investment (FDI) represents an investment from a company into another country either through acquisition or expansion of operations (Peng, 2014). Some countries require this as a term for conducting business within said country. The primary advantage of such a strategy is it can reduce cost of distributing products within a country, provide risk mitigation opportunities in the form of dual sources and/or familiarize a company with cultural customs necessary to penetrate a target market. Understanding a target market’s culture is critical to tailoring offerings to meet expectations. A one size fits all approach to global strategy can result in a lack of acceptance in certain markets. An example of tailoring an offering to account for different markets is Coca Cola’s classic coke. Although the Coke brand is constant the product itself has an altered sugar content and differing water purity depending where you are in the world ("Is the formula," 2014). This allows them to cater the flavor to local markets.
Although South Korea is still recovering from the 2008-2009 global financial crises, it is considered an emerging market. South Korea growth has been heavily reliant on exports (except for energy, such as oil which is imported), so the financial downfall in 2008-2009 had a tremendous impact on their exportation of goods. Allow the crisis of 2008-2008 hit South Korea hard they
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