Korea: The Economic Miracle Case Study

Open, View, and/or
Download this Document

Total Length: 614 words ( 2 double-spaced pages)

Total Sources: 1+

Page 1 of 2

Korea

South Korea has often been referred to an economic miracle. This is because the country went from a conquered and impoverished nation to an economic powerhouse. Its close proximity to China, Japan and it is a major trading partner of the United States. This is fueling growth in the last several decades. The result is that the nation has become one of the premier destinations for manufacturing. This is having a positive effect by diversifying the economy and it enables the middle class to develop. ("CIA World Factbook," 2015) For a large international retailer, this presents a unique opportunity for them become a dominant player inside: the women's wear and cosmetic sector. To fully understand what is occurring requires focusing on the retail environment and the impact of the currency. Together, these different elements will highlight the opportunities and challenges they will face inside South Korea.

Retail Environment

South Korea is the ideal opportunity to sell a host of different products to consumers who are becoming wealthier. According to the CIA World Factbook, per capita income is increasing consistently over the past three years. The below chart is highlighting these changes.

Personal Income Levels for South Korea from 2012 to 2014

Year

Personal Income

2012

$33,500

2013

$34,400

2014

$35.400 ("CIA World Factbook," 2015)

These figures are illustrating that South Koreans have more money to spend on: lingerie, women's wear and cosmetics.

Stuck Writing Your "Korea: The Economic Miracle" Case Study?

View All Our Example Korea: The Economic Miracle Case Study

Have A Custom Example Essay Written

As a result, an increasing number of retailers are emerging to take advantage of the changes. The most notable include: Costco, Mega Mart, Hi Mart, Kim's Club, Daewoo Department Store, Hyundai Department Store, Amazon.com, EBay Korea, G-Market and Inter-Park. These are potential competitors for the organization. The types of stores include: large retailers / hypermarkets, online and small independent firms. The major retailers are: Shinsegae, Amazon.com, Hyundai Department Store, Costco and EBay Korea. ("CIA World Factbook," 2015) Each one of these organizations is targeting lingerie, women's wear and cosmetics buyers. This makes it a rapidly growing market in comparison with the U.S. As America, is at its peak for sales and the marketplace is saturated with competitors. This is harder for retailers to increase earnings from stagnant demand and a mature marketplace. These shifts are something that the U.S. went through earlier in 20th century. Now, South Korea is going through a similar period of long-term growth. (Standard and Poor's, 2015)

Currency

The South Korean Won is….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Korea The Economic Miracle" (2015, April 17) Retrieved May 19, 2024, from
https://www.aceyourpaper.com/essays/korea-economic-miracle-2150398

Latest MLA Format (8th edition)

Copy Reference
"Korea The Economic Miracle" 17 April 2015. Web.19 May. 2024. <
https://www.aceyourpaper.com/essays/korea-economic-miracle-2150398>

Latest Chicago Format (16th edition)

Copy Reference
"Korea The Economic Miracle", 17 April 2015, Accessed.19 May. 2024,
https://www.aceyourpaper.com/essays/korea-economic-miracle-2150398
   

Open, View, and/or
Download this Document
order custom essay example