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Amora Pacific Essay

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AmorePacific: From Local to Global Beauty

1. Why has AmorePacific (AP) been doing so well in the home market? AmorePacific had already accomplished a leadership position in the Korean market in the mid-1960s. They implemented a door-to-door sales strategy on their own which carved out a dominant position in the sales channel. AmorePacific also led the Korean industry in initiating exports in 1959 and kept retaining export effort to global market. From the mid-1990s, AmorePacific endeavored at comprehensive cost-reduction programs, amplified R&D, restructured brand management as well as its brand portfolio, realigned long-stand distribution relationship. AmorePacific manufactured all its domestic selling products itself. It …show more content…

Though AmorePacific has been the leadership position in the Korean market, they were forced to change by some challenges in the 1990s. Domestically, the entry by multinationals made the company change in corporate and business strategy that were already well under way before the Asian crisis struck. At the business level, it repositioned domestically as described above. And internally, it deepened its commitments by investing in product development and manufacturing as well as marketing/distribution in selected foreign markets. The new millennium presented fresh challenge as the scale and scope of AmorePacific’s international activities increased.

3. Should AP use a uniform strategy for France, the United States, and China?
There was significant variation within cosmetics. Some of this reflected differences between East and West, skin characteristic by ethnic group. And it was the reason why AmorePacific did not use a uniform strategy for France, the U.S., and China. AmorePacific established global business strategy by being internationally fragmented. Strategy for AmorePacific is essentially localization and about the diversity of approaches being taken in the three major countries that seems to be successful.
AmorePacific had made inroads in the export market in the French market, began selling its first brand in 1988. But they had no successive distribution intermediaries and experienced failure. By then,

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