Swot Analysis Of Homeplus

The SWOT analysis categorizes the internal factors of a firm as strengths and weaknesses and the external aspects as opportunities and threats.

The rationale of using this model is that it is easy and clear to compare the internal and external aspects.

1) Strength

Homeplus is the second largest in supermarket industry, taking 25% of the market share (Lee, 2015). In 2008, Homeplus has strengthened its market position with acquisition of Homever, one of the largest competitors of Homeplus (The Telegraph, 2008). Furthermore, Homeplus expanded to the convenience store (CVS) market in 2011 by acquiring C-Space (convenience store chain) (IT Times, 2014). Through acquisition of Homever and C-Space, Homeplus could gain larger economies of scale and

Homeplus successfully combined those competencies with local and cultural knowledge and converted into its own unique

MBK has announced that it would invest $829mn in Homeplus for the following 2 years (Jung, 2015). This could be an absolutely good opportunity for Homeplus to grow and become the biggest in the supermarket industry.

There is a potential to recover the damaged brand image of Homeplus. Since 2006, Homeplus has developed green/sustainability initiatives in the retail sector in South Korea, such as supporting local communities, purchasing and selling products responsibly, protecting the environment, providing customers healthy choices, and so forth (Coe and Lee, 2013). Additionally, Homeplus committed to diminish its global carbon consumption by half by 2020. This may provide consumers image of being responsible for the society and environment.

Threats (150)

(표절 검사해봐야한다 논문이랑)

The major threat for Homeplus is the high level of economic nationalism in South Korea. High level of ethnocentric tendencies of consumers in Korea are evidenced in fact that most of the foreign firms suffered badly in 1990s (Phau and Chan, 2003). For instance, major competitors of Homeplus, such as Wal-Mart and Carrefour, failed and had to withdraw its business from Korea in 1990s purely due to strong economic nationalism. Furthermore, Korean government has come up with some regulations that restrain foreign firms operating in Korea. For instance, Korean government prohibited large supermarkets like Homeplus