Research Article
A Case Study on Internationalization of YOUNGONE CO. LTD.
1 Sookmyung Women's University
Published: January 2007 · Vol. 11, No. 1 · pp. 29-55
Full Text
Abstract
YOUNGONE CO. LTD. has developed a sportswear export business in Korea in 1970s and has overcome a lot of challenges of domestic and overseas business environment in 1980s through foreign production of entering into Bangladesh at an earlier time than the other firms. At that time, YOUNGONE CO. LTD. had to take a high risk for investing in Bangladesh because most Korean manufacturing company did not have any experience in foreign production, and also few foreign companies took a venture in Bangladesh, and YOUNGONE CO. LTD. could not get enough information to analyze the microscopic investment environment of Bangladesh. Overcoming these circumstances, the chairman Seong Ki-Hak has established the sports wear production capacities of a worldwide scale in Bangladesh with a long vision and has expanded the production bases to China, Vietnam, Mexico, El Salvador, Turkey and so on. Bangladesh plant enjoyed the location advantage for European buyers owing to the short delivery time, but was inadequate to deliver to Northern America because of long distance. Since the early of 1990s, the chairman Seong has sought the other efficient locations to solve these problems and expand the production bases. As YOUNGONE CO. LTD. have to supply a large volume with the buyers to diversified export markets at an exact delivery time, the distance between plants and markets was very important factor to consider. Also, in consideration of buyers’ favor for the suppliers who provide with one-stop services and flexible delivery timing, YOUNGONE CO. LTD. which take OEM as a main business, has established the production bases on a world scale. And YOUNGONE CO. LTD. could enjoy the higher margin than the other competitors by transacting with buyers directly and excluding the intermediary commissions.
