본문/내용
For a long time ‘Dongsuh’ Foods and Nestle have been kept
their monopoly on coffee mix market.
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Recently, ‘Namyang’ advance into the coffee mix market
implies that the large food companies enter into coffee
market. it takes a food industry official`s eye.
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We will analyze diversification of Namyang in coffee mix market, based on the strategic option selecting process such as internal (VRIO framework)& external analysis(michael porter’s 5 forces model).
We will know whether the Namyang’s diversification strategy is reasonable or not and predict future value of coffee mix market.
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Executive summary
CONTENTS
Industry
Food (processed milk product)
Founded
1964
Founders
Doo-young, Hong
Key people
Woong ? kim (chair man & CEO)
Won-sick, Hong (Major share holder)
Net income
13,507,030 thousand won <2xxx.3>
Total asset
948,49…
but values in that fixed brand over the past decades .
High profit- in case of foods, operating profit is less than 5%, while mix coffee is over 10%.
Namyang clarified “Recently, domestic dairy product market
were tied up from decrease of birthrate, we decided not
stick to milk processing and enter coffee market.”
Entry background
Namyang Case
- Coffee market have a lot of potential to growth
- In Korea, coffeemix market is still stronger than coffee
speciality store.
- Dongser and Nestle’s power were weaken by Namyang’s
challenge
- Companies think they can challenge on coffee market.
Entry background
Namyang Case
- Lotte Chilsung
Endure 2005 failure, launch
“Kantata” last July.
?
- Korea Yakurt
Leading company on fermented
milk and have coffee brand
“SantaFe”, they are planning to
enter coffeemix market. ?
-Daesang
Also suffer profitability deterioration on 2001, they recover coffee franchise to s