II. Industry Overview
IV. Case Studies
P&G expanded its operations in Asia by entering the Korean market in 1989, seven years after its entrance into Japan. The first step into the Korean market was taken rather cautiously in the form of a joint venture with a local company Seotong, to create Seotong-P&G.
Joint venture was a suitable form of starting a business under the uncertainty of a new market. P&G took the initiative in order to swiftly occupy the distribution channels. Also under the joint venture, research and development was carried out to promote product innovation with a capital of 11 billion won.
In 1993, the joint venture of Seotong-P&G transferred to FDI(Foreign Direct Investment). With sufficient experience and confidence earned from operating in the Korean market, P&G decided to end its joint venture. With sufficient experience and confidence earned from operating in the Korean market, P&G decided to end its joint venture with Seotong and become independent with its own strong brand. Capital was 107 billion won by 1993 and a premium shampoo, Pantene was launched.
Asiaweek, January 21, 2000 Vol. 26, http://www.asiaweek.com/asiaweek/magazine/2000/0121/biz.shampoowars.html. “Colgate history”, http://www.colgate.com/cp/corp.class/documents/History.pdf.
Euromonitor Global Market Information Database.
HBS Case, 9-391-003, January 30, 1992, Harvard Business School Publishing.
Hill, Charles W.L., International Business: Competing in the Global Marketplace 4th ed., McGraw-Hill Irwin, 2003, Pg.443-446, 571.
Modi, Toral, IndiaInfoline.com, "P&G's Gamble Fails" June 9, 2000, http://www.indiainfoline.com/fmcg/feat/pgga.html.
“P&G history”, http://www.pg.com.eg/history1.cfm.
Regional Trade Arrangement and Strategies of Multinationals: Implications of AFTA for Economic Integration, Mai Fujita, Apec Study Center, Institute of Developing Economies.
Tuinstra, Fons, Asiaweek.com, "Shampoo Wars:Why America's P&G is way ahead of Europe's Unilever in China." Jan. 21 2000 vol.26 No.2