What are Korean enterprises’s secrets of sucess?
“The world’s local bank”. Many of us might have heard this HSBC bank slogan before. Nowadays, the global economy has taken over every corner of the world, from the rural areas of Vietnam to the United States of America. The geographical bounds are no longer a constraint to enterprises of the world. If there is a need, there is a supply for it, goods distribution services are always ready for any opportunities.
It’s not simple to just construct a business model to incorporate the knowledge of being a “local” — as the slogan put it. Because if it were, all corporations would all be successful, how would that makes sense?? I have been on numerous business trips to Western Europe countries, USA, Australia and Asian countries. Therefore here, in my humble opinions, I would like to share with you what I have learnt from Korean enterprises on how they facilitate the Western-style capitalist economy in East Asian style.
I have travelled to Korea many times, to be frank I think this country does not have remarkable tourism values. The beaches are not very nice compared to those in Vietnam; temples and pagodas are not much of sights compared to those in Japan. Then why is it that tourists still flock in Korea? The answer: The Koreans have created a fine mixture of Western technology and East Asian mechanism. They excel at absorbing the latest technologies and creativity of Western countries. They recruit engineers from top companies such as Audi, BMW, or Mercedes to work for Kia, Hyundai or even Ssangyong — all of these countries are native Korean. Electronic engineers from Sony, Toshiba, and Nokia are also recruited to Samsung and LG, creating behemoths of the smartphone industry. That is just the first step: creating the finest products with the shrewdest human resources. The second step, which is probably Korea’s top strategic move in Asia, is getting support from the government. In other word, it’s called lobbying for massive funds, and this strategy is less likely to be available in most countries. They are willing to lobby not only their government but also foreign countries for their developments. That’s just the summary of how they facilitate a system that creates finest products, which is the most vital point, and how the government support them “unabashedly”. From here, they have created a background for a smooth platform and product manufacturing.
Now to the third step: they create brands in a very brazen way. If you have been to Tours Les Jour or Paris Baguette, you may have thought that these are French companies, but, much to our surprises, these are all actually “made in Korea”. They inaugurated a massive bakery in the renowned Champs- Élyséé Boulevard, where profit might not make up for the monthly rent that can cost a fortune. However, they count it as an expense for the marketing strategy. That’s a surefire way that might even tricks the Parisians that the brand is from France.
That’s not all about their brand recognition. They created K-pop stars, exhilarating drama series with predictable endings and enfranchise movies across the world. They also grant the copyright access to Vietnam broadcasting corporations that are still struggling to negotiate copyright purchases — a decisive move that influences the media industry. Now, Korean dramas, movies, and music can be seen flooding national TV channel (e.g. VTV) and even on social networks. Teenagers love them. Even housewives also watch Korean dramas every night. On this momentum, other Korean brands in other various utility items also appeared in these dramas and movies, creating indelible brand recognitions. What an astounding success! Even now, when I’m writing this essay, there have been Koreans restaurants and supermarkets in about 30 provinces across Vietnam — that’s roughly 50% of Vietnam.
That might be the explanation for how did Korea become one of the biggest and most dynamic economy in the world. Moreover, Koreans don’t really care about the country’s economy but rather focus on “chaebols” (family companies) such as Korean Air, Samsung, Lotte, Shinsegae, and Hyundai; all of the names that construct the Korean economy today are chaebols. They know how to benefit their country, enterprises, and themselves altogether. That’s I have observed about them and respect when I have a chance to work with them.
These opinions reflect my personal point of view and I hope you find it useful.