Sk Telecom Essay

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ASIAN CASE RESEARCH JOURNAL, VOL. 15, ISSUE 2, 201–251 (2011) acrj This case was prepared by Daniel Z. Mack and Associate Professor Theresa S. Cho of Seoul National University, Korea, as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative or business situation. Please send all correspondence to Associate Professor Theresa S. Cho, College of Business Administration, Seoul National University, 599 Gwanakro, Gwanak-gu, Seoul, Korea 151-742. E-mail: tcho@snu.ac.kr Sk Telecom — Going for the Global Leadership InTroducTIon Man Won Jung, CEO of SK Telecom, once again contemplated the company’s financial audit reports held out in front of him. The numbers did not spell much optimism about the company’s current performance, he mused. Annual net profits have dropped by as much as 22% for the fiscal year ended 2008, establishing a downtrend that started in 2005 (see Exhibit 1). Indeed, SK Telecom, one of the foremost telecommunications companies in South Korea was facing financial stagnation. Despite previous attempts to diversify and expand its operations beyond the Korean peninsula, internationalization efforts in the US, China and Vietnam has failed to achieve the return on investments SK Telecom had earlier projected. Furthermore, the increasing competition in the saturated Korean domestic market was adding to the dismal list of challenges SK Telecom was already facing. The incumbent’s closest rival, KT Corporation (KT Corp), who had successfully secured an exclusive deal with Apple to distribute the iPhone in Korea, gained significant momentum in gathering new subscribers at the expense of other operators. Jung pondered over the difficulties the company was facing. He needed to formulate a plan to respond to these challenges quickly, but how? Jung first joined the Corporate Planning Office of the SK

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