The purpose of the study was to analyze the case of growth of E-mart which is the representative discount store in the nation and has led the reasonable consumption of the people and kept on growing in the situation that domestic market was contracted...
The purpose of the study was to analyze the case of growth of E-mart which is the representative discount store in the nation and has led the reasonable consumption of the people and kept on growing in the situation that domestic market was contracted and the living condition of the people was getting harder due to the economic recession, with that of Wall-mart, an advanced discount store of US, in order to point out the problems in the growth of E-mart and suggest a reasonable growth strategy.
Not comparable in size to Wall-mart, the biggest in the world, E-mart which is occupying over 30% of the share of discount stores in the nation was selected for case analysis. Through the case analysis of E-mart which is making a comparatively stable growth, future direction of our distribution industry was suggested, though indirectly.
As discussed in the body of the article, the success factor of successful discount stores including E-mart is cost reduction, which is possible through increase of purchasing power by effective shop management and multiple shops. Recently, each business has been developing its own brand, or PB(Private Brand) goods to keep the quality up with that of famous brands and cut down advertising cost, promotion cost, and middle margins. Also, they are focusing on the improvement of customer services via diversified approaches to the customers such as construction of efficient logistics system and implementation of nature-friendly programs. As is the situation, the study was intended to suggest a reasonable growth strategy for E-mart which has a plan to open up in full scale the overseas markets, out of a hope that E-mart take a lesson from the case of Wall-mart and grow to the top discount store af the nation and more to a worldwide distribution business.
In full swing, it is prospected that distribution market is getting more hot in competition than naw. Though not competing with those foreign discount marts pushed into the domestic market, E-mart has to run a more advanced strategy to construct a leading position in domestic market, through which it should become a models the representative discount store of Korea as it is.