Hankook Case Study

Write a 1000- word report to answer the following questions:
1a) The text lists five strategic ways for a company to establish a competitive presence in the markets of other countries.
These are:
1. maintaining a national (one-country) production base and exporting good to foreign markets
2. licensing foreign firms to use the company’s technology or produce and distribute the company’s products
3. employing a franchising strategy
4. Relying upon acquisitions or internal startup ventures to gain entry into foreign markets
5. using strategic alliances or other collaborative partnerships to enter a foreign market or strengthen a firm’ competitiveness
b) Which of these strategies did Hankook employ before 2013 and which one did it move to at that time?
2) What, in your opinion, were the key strategic motivations behind Hankook’s change of strategy in 2013?
3) Give your assessment of why Hankook did not pursue any of the other remaining “strategic ways” (as listed in #1
above) in 2013?
4) Suppose we make the assumption that in 20013The Korean currency, the Won, was exchanged at the rate of
US$=1000 Won. Now, suppose that after the plant was established (say 2019) there was a radical change in the exact
exchange rate, so that on October 15th 2019 the exchange rate was US $1 = 500 Won. What impact might that trend
have on Hankook’s entire US sale from a) domestic production in US and b) imports from Korea? If, instead, the rate
was to go to US$1=2000 Won, what would be the impact? If you were the Hancock Chief Executive what might you
decide to do from a production perspective in each of these two scenarios?
5) Compare the investment approach of the Indian company, Apollo Tires, in the US market to that of Hankook. Which
strategy did Apollo attempt to follow?
6) Why would Apollo and Hankook choose different paths, given that they were both Asian tire companies trying to
increase their US sales? List some of the benefits and drawbacks of each path.

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