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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
INTEGRATED BUSINESS STRATEGY FOR
INTERNATIONALIZATION PROCESS: CASE STUDY ON KOREAN
COMPANAIES ENTER CHINA CONSUMER ELECTRONIC MARKET
Lee Jing Wen and Lawrence Arokiasamy
Universiti Tunku Abdul Rahman, Premier International University Perak
Abstract
In the recent years, a number of emerging issues are posing serious challenges to the
consumer electronic companies. Hence, these consumer electronic companies enter the new
area, dramatic challenges begun such as globalization, information technology advancement,
competition and financial constraints. Thus understanding the problems and think a way to
expand and strategies electronic company’s to future progress and grows. Therefore this
article explore the integrated business strategy based on the case study on two Korean’s
consumer electronic companies in their internalization process, in particular concentrated on
enter into China’s market. Based on the finding of qualitative analysis, this paper proposes a
model to integrate international marketing, business and operation strategy from some
literatures on internationalization process models and a case study on two Korean companies
for enter into foreign market. This conceptual paper is aiming to incorporate both theoretical
and practical business strategies into firm’s international expansion. We finish with
implication for international management, and a concluding statement.
Key words: Integrated Business Strategy, Globalization, Strategic Management, Consumer
Electronic Market
INTRODUCTION
Conventionally, the motives that encourage firm expand their business to other countries,
including access to distinctive resources, access to greater market growth, take advantage of
the economies of scale, (Hutzschenreuter ,D’Aveni & Voll 2009).Other reasons are
competition among competitors such as large and major players of consumer electronic
company, they need to expand their business internationally in order to stay competitive in
the industry.
The consumer electronics industry is rapidly growing globally, with many innovative
products being invented by recent advances technology. Due to the current ‘digital
revolution’, many older product formats up dated by more advanced technology and has
driven massive increases in consumer demand (Datamonitor, 2006). The product segment of
global consumer electronic industry has divided in three categories, which is sale of video,
audio and games consoles (Datamonitor, 2005). The global market is approximately equally
distributed between the US, Europe and Asia-Pacific. The Americas region accounts for 38%
of the global market, and is dominated by the US market. Additionally, the economic growth
in substantial markets such as China and India has also boosted global consumer electronic
market revenue (Datamonitor, June 2006).
The advancement of technology has contributed many great advantages and
motivation to the company to internalize their business; due to the success of the
communication and information technology, transportation and infrastructure technology. It
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