Restructuring retailing in Korea: the case of Samsung-Tesco

Abstract

This study deals with the restructuring of retailing in Korea during the last decade. The retail sector was a closed market, lagging the advances in the manufacturing sector, until the later 1990s. The retail market in Korea has become rapidly internationalized particularly due to the entry of European multinational retailers. More specifically, we investigate the market entry and growth strategies of Tesco. International firms have differed in their approaches and the joint-venture strategy of Tesco and especially its explicit attention to organizational culture is examined. While other international firms have now quit the country, the joint-venture firm has become the second biggest in a rapidly growing sector. Retail firms developing in the future in Korea or elsewhere in the region may need to consider similar strategies.