publication . Preprint . 2007

Regional Multinationals and the Korean Comestics Industry

Chang Hoon Oh; Alan M. Rugman;
Open Access
  • Published: 01 Jan 2007
Abstract
This paper analyzes the market penetration and expansion strategy of cosmetics and toiletries multinational enterprises (MNEs) in South Korea from the perspective of regional strategy as developed recently by Rugman. We find that MNEs have different market entry and expansion strategies in the home region and in the foreign region. Home region MNEs (Japanese MNEs in this case), in general, utilize their firm-specific advantages (FSAs) better than foreign region MNEs (European and MNEs from the Americas in this case). Due to differences in transaction costs, home region MNEs exploit downstream FSAs while foreign region MNEs develop upstream FSAs. Market similarit...
Subjects
free text keywords: regional strategy, market penetration, cosmetics industry, double diamond, South Korea
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