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Staples Global Business Strategy: Joint Venture

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1. Global Business Strategy 1.1 Entry Strategy: Joint Venture 1.1.1 Global Entry Strategy Background Started in 1991, Staples helped to found Canada’s first office superstore, the Business Depot LTD, and began to explore its global markets. In 1992, Staples entered European markets, by investing in German office superstore, and then the UK. In 2004, Staples entered Chinese market by investing Shanghai-based office delivery company, OA 365. In the same year, they entered Latin American markets with the acquisition of Officenet. Along with the global exploration, Staples were trying to take some shares from the Asia markets. Among the global market, Staples choose to acquire companies in most of European markets, while choose to use joint …show more content…

When comparing with China (including Taiwan) and India, South Korea has a limited land area and less population, which lead to a specified target market. By joint venture, Staples can take the advantages and experience from Asian markets in China, India and other countries. In the meantime, they can control the costs and risks in a lower level to start in the new market. Also they can have a quick access to channels of distribution, better understanding and experience from Korean local partners while gain complementary lines of business and synergies existed already. But, in the meantime, they need to realize that joint venture means a less control of the brand than acquisition, and they need to share profits, sometimes technologies and intangible properties, and there will be potential management issues and culture conflict. If Staples choose joint venture to enter South Korea market, they have the following peer companies to compete to cooperate …show more content…

The headquarters in Korea is in in Mullae-Ro, Youngdeungpo-Gu, Seoul, Korea, and has operate offices in major cities. • Employees and facilities: the South Korea UPS has more than 506 employees in South Korea, and more than 444,000 employees worldwide. UPS Flights: they have 78 weekly flights to and from Incheon Airport using B747, B767 & MD11. They use Incheon International Airport to serve with the South Korean air transportation. Operating Facilities in South Korea: they have 10 Centers, 4 Offices, 1 Hub and 6 Warehouses in total. • Big save: Due to a tremendous save in transportation if cooperate with UPS, the start up costs could be reduced to $8.6 million to $10.2 million. • Experience: Staples cooperated with UPS in 2007, and they cooperated well in the following years, and this experience bring both of them positive experience and new chance to cooperate again in South Korea. Both of China and South Korea are Asian countries, and they share most of the business cultures, so it’s easier for Staples to understand the management of South Korea from previous experience in China, and this will reduce the risks of culture

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