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Cocoa Bio Company Case Study

3336 words - 14 pages

Option A. Company Case Study


In the recent years, people pay more attention to healthy food. The brand I chose which name is Cocoa Bio can easily solve this problem. Cocoa Bio's idea is to create natural products of nourishment, which help people improving health using one of the best products that the nature has offered, the cocoa and consequently the chocolate. Cocoa Bio (2010).
Cocoa Bio was established in the United Kingdom. In March of 1997, Cocoa Bio started working to offer us this kind of products to a marketing expansion. In this essay, I will focus on expanding this brand to South Korean in which has not been covered yet. I will use PESTEL analysis macro ...view middle of the document...

The positive effect to import and international investments is getting more encourage and support from the government of the host country.

Economical factors
During half century of development, South Korea joined the OECD in 1996 and a decade later became a member of OECD’s Development Assistance Committee. As a developed country, South Korea is one of the world's wealthiest nations and one of the fastest growing countries, with high-income economy and a mature market. Suffering from lack of natural resources, South Korea adopted an export-oriented strategy to accelerate economy growth, to prevent the formation of a huge internal consumer market. South Korean is one of the few countries that the economy is signalling the way forward during the financial crisis. In 2012, South Korea was the 7th largest importer and 6th largest exporter in the world, and economic increase is faster than that of the European Union and United States in 2013. The South Korean economy of the 21st century is expected a stable and strong growth from 3.9% to 4.2% annually between 2011 and 2030. Britannica Online Encyclopedia(2013). Besides, it is well known that South Korean shipbuilding and automobile industry occupy the first place throughout the world. The table below shows the overall "Ease of Doing Business" rank (out of 189 economies) and the point economy's distance to frontier (DTF).
According to the table, it is implied that expanding business to South Korea will have a fairly good environment and bright prospect. However, there also have negative aspects, such as exchange rate decline, it will lead to an increase in our cost of exports.

Subcultural factors
Because of South Korean cultural diversity, natives have strong collective consciousness and national consciousness. For instance, people think buying local brands could drive the domestic economy, so they choose local products instead of imported products. Lewis, J. and Sesay, A. (2005). South Korea is the world’s 12th highest living standard, and greatly influenced by the Western world. Under the influence of highly modernized, more and more people are care about healthy lifestyle. Moreover, because of the Korean language is influenced by other foreign languages, it is more easily for them to get in touch with foreign brands, thus we should take a good advantage of it to expand our brand into Korean market.

Technological factors
Public transportation in South Korea is world class. As a technology developed country, South Korea has the fastest Internet connection speeds in the world. Also, ranking 2nd in smartphone penetration, and 1st in the 4G LTE penetration, ICT Development Index, e-Government. Highly developed networks and media are conducive to the promotion and marketing of new products. Achrol, R. and Kotler, P. (1999).
Furthermore, South Korean has a technologically advanced transportation, which is provided by extensive networks of railways, ferry services, bus routes,...

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