Home Articles Abstract
Research Article

Samsung Electronics’ Foreign Market Entry Strategy: The Case of LCD Business in Eastern Europe

Joohan Ryoo

Hanyang University

Published: January 2011 · Vol. 15, No. 3 · pp. 71-111
Full Text

Abstract

This study investigated Samsung Electronics' LCD Business Unit and its European market entry strategy which was undertaken from 2006 to 2008. In particular, this study examined how and why the LCD business Unit had chosen Slovak Republic as its LCD module production site. Given this question, this study investigated the motivation, mode of entry, scale of entry and site selection process based on in-dept case analysis. This study found that the LCD Business Unit considered external factor and strategic factor to justify their European market entry decision. The company relied on past experience to decide the mode of entry, while the company decided the scale of entry based on competitor's case and convenience of exit strategy. To select the best site from 45 potential ones located in Poland, Slovak and Hungary,the company examined political and economic condition, size of government assistance, labor market environment, costs of inbound and outbound logistics and strategic movement of client companies. Implication and further investigational issues are provided after the analysis.
Keywords: 해외시장 진출해외진출전략입지선정LCD 산업