Korean SIS Case
Term Project
20011130 산경과 김대석
20021154 산경과 심영섭
20021116 산경과 태재웅
20021105 산경과 배경종
Contents
1. Current state of E mart
2. Success Factor
3. Why didn’t Wal-mart succeed in Korea?
4. Future of E mart
5. Q and A
Management Information System
Current state of E mart
Price Earning Ratio
Management Information System
1. Current 2. Success 3. Wal-mart
State
Factor
4. Future
of E mart
# of Market Place in Korea
Current state of E mart
Sales Amount
Management Information System
1. Current 2. Success 3. Wal-mart
State
Factor
Market Share
4. Future
of E mart
Current state of E mart
Brand Image of E mart
2003 year
13th place
2004 year
4th place
2005 year
4th place
2006 year
3rd place
Management Information System
1. Current 2. Success 3. Wal-mart
State
Factor
4. Future
of E mart
Brand Image of Home plus
2006 year
89th place
Contents
1. Current state of E mart
2. Success Factor
3. Why didn’t Wal-mart succeed in Korea?
4. Future of E mart
5. Q and A
Management Information System
Success Factor
1. Current 2. Success 3. K mart
State
Factor
4. Future
of E mart
High-tech EDI system
The distinguished transaction system between
E-mart and Manufacturers


EDI automatically tracked inventory changes; triggered orders,
invoices, other documents related to transactions
The information of the amount of sales, inventories and expected
orders was shared within E-mart and Manufactures
Reduced time
Minimized
Buffer stocks
Management Information System
• JIT product supply
• Fresh product supply
• Lower costs
for logistics
Success Factor
1. Current 2. Success 3. K mart
State
Factor
4. Future
of E mart
Which SIS?
EDI (Electronic Data Interchange)
The electronic exchange of business transaction
documents over the Internet and other networks
between supply chain trading partners (organizations
and their customers and suppliers).
EDI streamlined processes, saved time,
and increased accuracy
Management Information System
1. Current 2. Success 3. K mart
State
Factor
Success Factor
4. Future
of E mart
Localization
Right size
Local Mileage
system
Double price
compensation
Fresh groceries
• Right size of display stands fitted to
shape of Korean
• 5% of all amounts of receipt price
returned to local agencies
• Unless they guaranteed the lowest price among other
discount marts, they compensated the double price of goods
• Compare to foreign discount marts sell industrial products mainly,
E-mart offered fresh products chiefly
Meet the needs of domestic customers
Management Information System
Contents
1. Current state of E mart
2. Success Factor
3. Why didn’t Wal-mart succeed in Korea?
4. Future of E mart
5. Q and A
Management Information System
1. Current 2. Success 3. Wal-mart
State
Factor
Why Wal-mart Failed?
Failure 1
Failure 2
Failure 3
Slow start from
Bad Location of
Fail to
legal conflict to
Market
localization
patent
Management Information System
4. Future
of E mart
Failure 1
Failure 2
Slow start
Bad Location
Fail to
of Market
localization
from legal
Failure 3
1. Current 2. Success 3. Wal-mart
State
Factor
4. Future
of E mart
conflict to
patent
Patent dispute
1995
In 1995, wal-mart negotiated to buy their brand
Wal-mart
In 1998, wal-mart bought “Korea Macro”
1999
1998
It was 1999 that they first used their brand.
They started their business late
Management Information System
Failure 1
Failure 2
Slow start
Bad Location
Fail to
of Market
localization
from legal
Failure 3
1. Current 2. Success 3. Wal-mart
State
Factor
conflict to
4. Future
of E mart
16 market places in Korea
patent
1
There was only 1 discount store in Seoul
2
5
3
6
4
7
8
Some of the stores were located in outside
9
12
11
10
13
14
Small # of market compared to E-mart.
15
16
Management Information System
1. Current 2. Success 3. Wal-mart
State
Factor
4. Future
of E mart
# of market place increase
Management Information System
Year
E mart
2002
49
15
2003
60
15
2004
71
16
2005
83
16
Wal mart
Failure 1
Failure 2
Slow start
Bad Location
Fail to
of Market
localization
from legal
Failure 3
1. Current 2. Success 3. Wal-mart
State
Factor
conflict to
patent
Wal-mart vs E-mart
Wal mart failed because of these
Warehouse
Store
Management Information System
Height
Product
packaging
4. Future
of E mart
Contents
1. Current state of E mart
2. Success Factor
3. Why didn’t Wal-mart succeed in Korea?
4. Future of E mart
5. Q and A
Management Information System
Future of E mart
1. Current 2. Success 3. K mart
State
Factor
4. Future
of E mart
1. One-stop shopping
2. Approach
Convenience
the
3. Individuality
customer needs!
1.
2.
3.
Saturation status in Korea.
Emotional Similarity
Maintain competitive price
Management Information System
Push into the
Chinese market
Contents
1. Current state of E mart
2. Success Factor
3. Why didn’t Wal-mart succeed in Korea?
4. Future of E mart
5. Q and A
Management Information System
Q&A
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Management Information System