British American Tobacco in South Korea


British American Tobacco in South Korea
Case Code: BSTR254
Case Length: 22 Pages
Period: 1998-2006
Pub Date: 2007
Teaching Note: Not Available
 Price: Rs.400
Organization: British American Tobacco
Industry: Agriculture
Countries: South Korea
Themes: International Business, Globalization Business
British American Tobacco in South Korea
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses UK based tobacco company British American Tobacco (BAT) business strategies in South Korea. One of the largest tobacco companies in the world, BAT operated in more than 180 countries. South Korea was a tough market and several multinational companies, which had found success in many countries across the world, were unsuccessful when it came to South Korea. In such a scenario, BAT not only managed to enter the highly monopolized tobacco market in Korea, but also carved a niche for itself and became the second largest player within few years. BAT entry into the market coincided with the macroeconomic changes and liberalization in the country.

By taking advantage of these changes, BAT was able to establish itself firmly in the market. By gaining thorough understanding of the market, BAT introduced several new products with low tar content for the Korean consumers. However, by early 2007, with changing attitudes towards smoking and increasing prices of tobacco, industry experts felt that BAT could be in for some tough times ahead.

Issues

The case is structured to achieve the following teaching objectives

  • Understand BAT's global operations in general and South Korean operations in particular
  • Study and analyze the entry and expansion strategies of BAT in South Korea
  • Critically examine the localization strategies of BAT in South Korea
  • Examine the challenges faced by BAT in South Korea

Contents

Keywords

BAT Korea, International Business, Tobacco Industry in South Korea, Success Story, Leaf Production Standards, Growth Strategies, International Marketing, Distribution Strategies , Recruitment, Employee Policies, Internal Smoking Policy, Direct Distribution Model, Standards of Business Conduct, Global Graduate Development Program

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