On being local and being successful in Korea: Tesco and E-mart

Woohyoung Kim, Alan Hallsworth, Hyun Kim

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    Tesco withdrew from the Korean market in September 2015. The withdrawal of Tesco has not generally been seen as being due to management failure, but, instead, as a strategic reallocation of resources by Tesco in the UK. Yet there may still be more to understand about this development. The tale of Tesco’s arrival in and departure from Korea has not ended. We consider the relative performance of Tesco (Homeplus) stores and those of rival E-Mart. We find that, in attempting to be authentically local, Tesco may have hampered its own long-term success in an important overseas market. In an empirical study we utilised the Logit model to contrast selection factors employed by local consumers in respect of both Tesco/Homeplus and E-Mart. Our analysis reveals that product range (including Private Brands), store accessibility, and convenience were the main factors on which consumers discriminated between these rivals.
    Original languageEnglish
    Early online date2 May 2018
    Publication statusEarly online - 2 May 2018


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