The primary objective of this research is to develop a strategy for the Korean home appliances industry to sustain its growth in the global market. The current situation faced by this industry is not so favorable: it enters into the mature stage in its product life cycle, and has to deal with the increased uncertainty in foreign exchange rates more recently.
Our research model postulates that the companies in the industry should concentrate on two things at the same time, raising their internal capability and developing growth strategies targeted at the global market. However, these two are not separated: the internal capability should support the globalization, and the globalization needs to supply an enhanced motivation to improve the internal capability.
To verify our proposition, we conducted case studies in the world home appliances industry with a particular emphasis on Electrolux and Whirlpool. By analyzing their globalization history and strategic moves, we were able to confirm the concurrent importance of internal competence and external growth strategy through globalization. We conclude that the Korean home appliances industry should learn a lesson from these companies, and try to develop the two strategies and coordinate them in an integrated way.
