the organization’s international business expansion plan should include the concepts and ideas covered throughout this course. You are to select a country that does not recognize all of the...

Introduction
STUV is a 9 billion electronic giant and is among the top 10 consumer durable companies in
South Korea. STUV started its operations way back in 1982 with radio transistor as the lone
product in South Korea. From till, the company has travelled a long way and today is one of the
top ten consumer durable products company is South Korea. The company has been doing very
well since inception and had diversified its business. It has diversified its business in various
product lines in electronics consumer durable category.
Currently it has huge numbers of products in its portfolio. Almost all the consumer electronic
durable goods are being produced by the company. Company produces and markets these
products:
 Televisions
 Refrigerators
 Washing machines
 Air Conditioners
 Music Players
 Sound Systems
 Microwaves
 Other Cooking Appliances
 Computer Peripherals: Printers, Optical Mouse, Key Boards, Head Phones and Speakers
 Photo Copiers
 Satellite Phones
The company has scaled up its operations and currently has its operations in Asia, Europe, and
Americas. It has sales offices in nearly 35 countries across the world including, China, Japan,
India, Singapore, the United States, Canada, Brazil, Argentina, United Kingdom, Germany,
France and Italy etc. it has manufacturing facilities across the globe for manufacture of its
products. Till the date the company has been producing all it products in its own factories. It has
never out sources the production function to any other vendors or parties. It has manufacturing
facilities at 7 locations, three locations in Asia, two locations in Europe and Americas each. It is
has manufacturing plants in these countries:
 South Korea
 China
 India
 Germany
 United Kingdom
 United States of America
 Brazil
From these seven plants, company exports its products to other countries. South Korea, India and
China are its biggest export hubs. More than 70 % of the productions take place in these three
locations. Indian has become it is biggest exporting manufacturing hub. Almost 40% of its
production is in India. 10 % of its whole production, it produces in Europe. And 15 % of its
production is done in the United States of America and just 5% in Brazil. The plant in Brazil
became operational in 2010 itself.
Maximum of its sales come from Asian markets. India is its biggest market by sales. Nearly 30%
of its sales come from India. Basically India was the first market it entered outside South Korea.
In 1992, company established its first sales office in Mumbai, India. Since then it has opened
offices in 35 countries. Its domestic sales just account for 16% and rest comes from international
markets. Company has been witnessing steady sales growth in South Korea. But its international
operations are producing higher growth than the local market. It is witnessing an overall sales
growth of 11% annually.
Company plans to enter African market and it has decided to enter the African market by first
entering the South African market so that can easily understand the market as well as the
favorable conditions in the country provides it time and opportunities to start its operation in
South Africa. So in this paper, an expansion strategy to South Africa is the main focus.
Economical, Social Political Conditions in South Africa
South Africa is one of the most stable and democratic country in Africa as well as world too.
South Africa is most stable and has a democratic and stable government. It is also categorized as
one fastest growing economies in emerging economies. The per capita income of a national of
South Africa is relatively very high in comparison to other African countries. Economically
country is stable and has favorable rules, laws and regulation for trade and business as well as
international investments in the country and entry of foreign companies is welcome in the
country. Also the culture and life style makes consumer durables necessary part of life in the
country. This will help in reaching scale in the production process. Also the business
environment in the country is very progressive and economy is relatively open than other
counterparts in African...