New Tide of Retail Industry

Summary

June 6th, Lotte Shopping opened online supermarket. Customers can buy groceries everyday in http://www.lotteimall.com/ conveniently done with one click. This online shopping is give two advantages. One is a cheap price. Customers find discount goods easily, and they can save shopping cost like a gas fee for car and other transportations. Second advantage is saving time. Internet shopping is easy and simple. It doesn’t need time for moving, parking and finding.
Lotte has a distribution network across the whole country, so this new system is possible. It will offer free home-delivery services on all purchases, without having to spend a minimum, to households near a Lotte Super outlet. Free delivery will be provided even for the purchase of one bottle of water.
There are 89 Lotte super, and internet offer same products and price as the offline. This local online market is a unique position, and it creates synergy other major retail lines.

My opinion

Marketing is a creating value. I think the marketing strategy of Lotte Shopping creates value for customers. One is a convinience and the other is saving costomers’ time and cost. It is a kind of innovation.
This strategy is a good for long perspective. Nowadays, 40 to 50 housewives don’t know well about internet and internet shoping, but 20 to 30 housewives are different. They already know about internet, and enjoy internet shopping. Besides, the young doesn’t want to marry early, so they don’t have enough time to go shopping for groceries. Therefore, this strategy will be more popular in near future.
However, I worry about a cost structure. Surely, their cost will increase. In Korea, large discount stores are popular. Housewives want to buy in a discount price. If this strategy higher the cost, it would lower the number of customer. Especially, free delivery system is a big risk. However, if they can realize economies scale they can success.
I can’t be sure about this strategy. However, this kind of technological change will make many other kind of strategy continuously.

References;Author: By Yoo Soh-jung Title: Lotte internet mall to open supermarket, The Korea Herald. June 7, 2008

20300174 Nah Kilwoong, Entry - 14

Kia Lotze Innovation unveiled

Summary>
Kia Motors Corp. revealed the Lotze Innovation, the upgraded version of the mid-sized sedan Lotze. The Lotze Innovation is the first car from a local carmaker to be equipped with an ECO driving system that alerts the driver when the car is operating under the most efficient conditions in terms of fuel economy. Also, it is fitted with button ignition and smart key systems.
The car is equipped with a 2-liter engine that puts out 163 brake horsepower, the highest output among domestic models in the segment, or a 2.4-liter engine that has a maximum output of 179 brake horsepower. Both trim levels have a fuel economy of 11.5 kilometers per liter for vehicles fitted with automatic transmissions while the manual transmission version of the 2-liter trim can travel 12.8 kilometers on a liter of fuel.

Opinion>
Hyundai Motor Co. and Kia Motors Corp. put their products’ names in Best Bet of Car Book, leaving out their competitors. But, its proportion has gone down, from 46 percent in 2001 to 29.3 percent last year, although North America has maintained its position as the largest importer of Korean cars. The reason of decrease in sales is that Kia Motors Corp. don’t have any distinguishing mark. Toyota has JIT(Just In Time) system, Audi has sporty and luxury image, Benz has dignified image. What is the image of Kia? Another reason is that the shortage of advertising.
Recently, High gas prices created a demand for more fuel-efficient vehicles. Lotze Innovation equipped of the highest trim levels will meet the needs. Also, it will gain an image of eco-friendly car. But, Kia Motors Corp. is lacked of advertising. The company planed to make sporty car so, it advertise with sporty-image star. And, the company need to build brand recognition through various promotion

References;
Author: Choi He-suk
Title: Kia Lotze Innovation unveiled June 13, 2008
http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005Yq&FOLDER=%ED%9C%B4%EC%A7%80%ED%86%B5&mpage=1&KEYTYPE=&KEYWORD=&_top_hm=w_read

20600613 13th entry

Land of Chance, Middle East

Summary

Yesterday government discussed to help Korean companies expand business in the Middle East. That is for raising money from increasing petrodollars. We have an experience on economic development, especially construction and resources development. We can offer and consult their companies. The government will also make an effort to improve the investment envrionment in Middle East contries. Additionally, Seoul has a plan to hold investment-relations conferences for Middle East countries and investors.

My oppinion

In summer 2005, I went Oman. Before I went there, I don’t know well about Middle East. I only knew about War in Gulf or conflictton for religion. However, I totally changed my ideas, after I had experienced. Oman ruled by a King, and he has strong sense of wise and justiceness, he always considered their people based on the Koran. Therefore Oman made a policy quickly, and they are good at using petrodollars. Captial of Oman is Muscat, the city was planned, so that has straight road, and well constructed infra structure. Moreover, they invest continually in resource development and sight seeing.
Nowadays, oil pirce is over than $ 120, and it has a critical threat for many companies. However few companies have an opportunity. Those are construction companies in Middle East, because petrodallars are increased by a high price. It will be invested in their infra structure. Middle East contries worry about oil exhaustion, so they prepare it using their petrodallars. Therefore their investment for future will not finish easily.
I think not only construction companies earn money in Middle East, but also heavy industry companies gather more revenue. During Agflation, Middle East contries want to grow their crop theirself. Dusan is ranked first place in making fresh water, and fresh water is necessary in Middle East for agriculture. Dosan get a lot of orders from Middle East and their stock price increase, too. The government should think widely, if so, Middle East will be more attractive.

References;Author: By Jin Hyun-joo Title: Korean firms set bigger sights on Middle East, The Korea Herald. June 6, 2008

20300174 Nah Kilwoong, Entry - 13

Hyundai Motor targets Russia's middle class

Summary>
Hyundai Motor Co. is looking to tap the growing middle class to consolidate its position in the Russian car market. Since first exporting to Russia in 1990, the company currently has the second largest market share among foreign carmakers in Russia after General Motors Corp.'s Chevrolet. Among all carmakers, Hyundai Motor holds the third largest market share and with more people joining the middle class, Hyundai cars are gaining more and more attention
Hyundai is still considered the cheaper brand but with the launch of vehicles like the Tucson in recent years, its brand image has been improving. Also, Genesis which is likely to go on sale here at the end of the year will be beneficial for the company's brand image in Russia. The company expects that it could use the car to build a luxury brand like Toyota's Lexus."
The planned plant in St. Petersburg will provide valuable benefits to the company. The plant will help raise sales by removing the 25 percent tariff placed on imported cars and providing a cheaper labor force for Hyundai. Once the plant is completed and production in Russia begins, the supply problem could be solved. Other foreign brands such as Ford and Toyota saw large increases in sales after the companies built plants in St. Petersburg.

Opinion> Russia’s rapid economic development has left the growth of middle class. To earn higher profits, Hyndai Motor Co. has to target the new class and change its cheap brand image. Star marketing will change the cheap image and imprint luxury car image in Russians’ mind. The company can be well-known through advertisement appearing a movie star or a singer or a famous people who have luxury image. Also, the company has to sponsor its cars to movie or drama for not-so-subliminal kind of advertising, product placement.
It is important to raise name recognition, but the most important thing is quality and services. Because it takes long time to improve quality, the company has to strive to provide customer the best service. Hyndai Motor Co. has to make competitive advantage to compete other car makers through the best service - fast delivery system, low repairing expenses, etc,

References;Author: Choi He-suk
Title: Hyundai Motor targets Russia's middle class June 7, 2008
http://mail2.daum.net/hanmail/mail/ViewMail.daum?MSGID=0000000000005YX&FOLDER=%ED%9C%B4%EC%A7%80%ED%86%B5&mpage=1&KEYTYPE=&KEYWORD=&_top_hm=w_read


20600613 12th entry

Most Job Hoppers Regret Move

Most Job Hoppers Regret Move

Summary

The survey shows that more than half of the respondents are not happy with their current jobs and are making at least some efforts to move to another company. Job hoppers usually regret about changing another job. Reasons for regretting job change are that they realized “Not much better than previous job”, “Actual firm not as good as its reputation, “New company did not keep its promise”.

Opinion

Changing the job can be a good opportunity for people who want to experience new challenges. When they are young trying to move other jobs, they might think that they are finding jobs fitting their aptitude. However, evaluations like these young people can be threats for them because changing from jobs to other jobs is not profit for their company. Moreover, if changing jobs became their habit or periodic processes, job hoppers can not work anywhere, eventually. To hold worker in own company, company has developed diverse programs that make worker feel happy when they work. For example, workers and programmers in Microsoft company can decorate their work space, and this effect brought both improvement of efficiency and workers’ satisfaction about their work. I think teamwork is the most important to make workers be one unit in the company. To develop teamwork, sports game is the option company can easily choose. For workers, there are many sports game worker like to play like soccer, basketball, badminton, table tennis, marathon, and so on. One important point is that company should satisfy every worker be happy through competition or cooperation in sports game. If workers can feel happiness through special program to promote teamwork, it results in improvements of working efficiency.

Reference
www.koreatimes.co.kr
By Michael HaStaff Reporter

20600517 Lee, yong jae -entry 13