Iphone in South Korea Essay

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Case Study 3: Issues related to Product 1. Describe the situation (what do you actually know about it from reading the case? Product of Apple which is IPhone enters the South Korea market late than other country because South Korea is not an easy market to break in due to unique environmental and marketplace conditions. In order to make IPhone succeed in the market, they need obtain quality information its commercial dynamic. South Korea’s mobile phone market is driven by a near oligopoly of three telecom organizations which is SK Telekom, KTF and LG Telekom. The South Korean legal system is not same as British-inspired system where the country has straightforward legal systems that Apple need to deal with in its global empire. South Korean’s low birth rate and ageing population has implication for the growth of discretionary spending on the items that Apple sells. In South Korean, it is expected that nearly 94 percent of households will have a mobile phone which average of age from 25- to 50-year-olds. From a psychographic perspective, South Koreans choose to use their mobile phones as windows to their lifestyle. They also have the largest disposable incomes and demand the very latest in innovation. In term of usage, they are like to switch mobile phones with little brand loyalty. Their buying behavior is also heavily influenced by social groups. Apple has to explore types of market entry with franchising, direct investment and joint venture as they have been sold through the network of its own stores, its online stores and independent affiliates throughout the world. Apple also has to choose marketing mis that they need to use to market IPhone. 2. Defining the issue * What appears to be the problem(s) here? The issues that Apple faced in launching IPhone in South Korea are: I. To sell an identical phone model that has existed in the market or

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