Asian pacific business since 1997: Samsung and South Korea

Résumé du document

Everybody knows Samsung, Toyota, Sony, LG or even Hyundai which are very famous brand all over the world. Those very successful companies have similarity. Indeed, all of them come from the Pacific Rim. The Pacific Rim is defined by "far Eastern countries and markets bordering the Pacific Ocean, consisting of Australia, Cambodia, China, Hong Kong, Indonesia, Japan, Korea, Laos, Malaysia, New Zealand, Papua New Guinea, Philippines, Singapore, Taiwan, Thailand and Vietnam" (InvestorWords, 2008). This region of the world has been guided by the success of Japan and its business group called Keiretsus which is currently the most powerful country of Asia. We have also noticed the quite recent development of other Asian countries and particularly the development of the four Asian tiger which are South Korea, Singapore, Hong Kong and Taiwan. The Pacific Rim is a very powerful region but also very competitive taking advantage of, very efficient hubs (e.g. Singapore is the world's biggest port) and of an incredible growth for a few years ago due to the opening of their market and their ability to produce cheaper than other countries.

Extraits

[...] References Aham, B. (2004) "The Samsung Code" [online]. Available at: [Accessed 4th April 2008] BBC News (2008) "South Korea: A political history" [online]. Available at: [Accessed 12th April 2008] Canada (2008) [online]. Available at: [Accessed 15th March 2008] Casserly, D. (2008) "Culture, Pacific Asian Success and Trust", Course document Delanoë, P. (2008) "Assigment of International Economics" Eng, T.Y and Kim, E.J (2008) " An examination of the antecedents of customer loyalty in a Confucian culture: The case of South Korea" p437-458, 22p. [...]

[...] Available at: [Accessed 23rd April 2008] TF1 (2008) "La Corée du Sud" [online]. Available at: [Accessed 1st May 2008] The Chaebol of South Korea (2008) "The Chaebol of South Korea" [online]. Available at: [Accessed 27th June 2008] US Department of State (2008) "Background Note: South Korea" [online]. Available at: [Accessed 16th March 2008] Yoo Soh-jung (2006) " Shaping the future: Samsung's formula for success" [online]. [...]

[...] This success is mainly due to the measures which have been taken by government and particularly the objective of industrialization of the country. Industrialization The economy of South Korea was mostly based on agriculture but during the 1960's, the country has changed its strategy. Indeed, after the war of Korea, the country has received financial help from all over the world but mainly from the United States. This money has motivated the government to invest in infrastructures in order to allow the development of manufacturing which was driven by export-led growth. [...]

[...] Economical The political factors have determined the economical development of South Korea. Indeed, in the 1980's, South Korea underwent a huge economic transformation through export oriented industrialisation. South Korea imported raw materials to develop finished goods (BBC News, 2008). This depended on increasing investment and maintaining a cheap labour force. During the 80s, the country also moved increasingly towards high- tech and computer industry. Indeed, South Korea has become very competitive thanks to the cheap cost of the local work force but also thanks to the ability of the country in researching and developing innovations. [...]

[...] The Pacific Rim is a very powerful region but also very competitive taking advantage of, very efficient hubs (e.g. Singapore is the world's biggest port), of an incredible growth for few years ago due to the opening of their market and their ability to produce cheaper than other countries. That means that Asian countries have a competitive advantage in certain field and particularly in making high technology products. "The comparative advantage measures the cost of production of one precise product in relation with another product and it consequently determines the sector of activity in which a country should be specialized according to several data such as the natural resources or the labour capability to produce the product in order to greatly increase the competitiveness of the country at its maximum" (Delanoë, 2008). [...]