Examine the localization strategies of BAT in South Korea.

International Business

Examine the localization strategies of BAT in South Korea.

CASE STUDY (20 Marks)

The case discusses UK based tobacco company British American Tobacco (BAT) business strategies in South Korea. One of the largest tobacco companies in the world, BAT operated in more than 180 countries. South Korea was a tough market and several

multinational companies, which had found success in many countries across the world, were unsuccessful when it came to South Korea. In such a scenario, BAT not only managed to enter the highly monopolized tobacco market in Korea, but also carved a niche for itself and became the second largest player within few years. BAT entry into the market coincided with the macroeconomic changes and liberalization in the country. By taking advantage of these changes, BAT was able to establish itself firmly in the market. By gaining thorough understanding of the market, BAT introduced several new products with low tar content for the Korean consumers. However, by early 2007, with changing attitudes towards smoking and increasing prices of tobacco, industry experts felt that BAT could be in for some tough times ahead.

Answer the following question.


Q1. Analyze the entry and expansion strategies of BAT in South Korea.


Q2. Examine the localization strategies of BAT in South Korea.


Q3. Examine the challenges faced by BAT in South Korea.

Examine the localization strategies of BAT in South Korea.


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