Research Article
Balancing Coordination and Configuration: KT&G in the Middle East and Indonesia
Hankuk University of Foreign Studies
Published: January 2025 · Vol. 29, No. 2 · pp. 1-27
DOI: https://doi.org/10.17287/kbr.2025.29.2.1
Full Text
Abstract
KT&G, a Korean tobacco company, has experienced substantial growth since 1998, expanding its reach to 143 countries by 2023. This article examines KT&G's strategies for balancing global coordination with regional configuration, particularly by comparing its operations in the Middle East and Indonesia. The study highlights that KT&G leveraged the anti-Western sentiment in the Middle East, forming strategic alliances to overcome regulatory challenges and cater to cultural preferences. KT&G took advantage of the relatively less regulated tobacco market in Indonesia by partnering with local experts to navigate diverse market conditions. The research also reveals similar efforts across both regions to achieve operational efficiencies alongside distinctive adaptations tailored to each market. This analysis enriches the Integration-Responsiveness framework by illustrating how KT&G successfully balances global coordination with local configuration. This approach enabled KT&G to effectively meet regional consumer preferences and cultural differences, underscoring the importance of adaptability in global business strategies. These insights deepen our understanding of globalization complexities and offer a valuable framework for other companies looking to expand internationally.
