Email:

Subject: Innovating Homeplus’s solutions report

Dear Mr.X – The new Managing Director of Homeplus,

On behalf of Homeplus, I warmly welcome you to become an important part of our

organization. I am pleased to share with you our Innovating solution report of
Homeplus for helping you to understand Homeplus’s development history, vision
and new challenges. As you know, Homeplus is a leading hypermarket chain in
South Korea, and we have been closely following their innovative strategies and
technologies for enhancing customer experience and operational efficiency.

The report provides a comprehensive analysis of the Homeplus Solution, including

their supply chain management, business strategies and the solutions for future.

I believe that this report will be of great interest to you and your team. Our analysis
highlights several key takeaways and best practices that can be applied to your own
business operations.

Please find the report attached to this email. If you have any question or would like
to discuss, please do not hesitate to contact me. I look forward to hearing your
thoughts on this report.

Thank you.

Best regards,

Seung Han-Lee
CEO, Homeplus.
HOMEPLUS / INNOVATING
SOLUTIONS REPORT

Table of Contents
Sr.no Content Pg.no
1 Executive Summary 1
2 Introduction 1
3 The Main body 2
4 Conclusion 3

Executive Summary
This report is a comprehensive of market analysis, latest trends and strategies for Homeplus’s
innovation in the future.

Introduction
Based on data from market analysis, the report highlights Homeplus’s challenges and opportunities
clearly. It not only helps reader can recognize the situation of Homeplus in Korean market but also
provides actionable solutions for Board of Director to drive innovation and keep the company
moving ahead in a competitive marketplace as Korean retail market.
The Main body
a. The Problem
i. What was the problem?
SSM (Super-Supermarket) – The most important retail chain of Homeplus with the total
number of 258 outlets in South Korea is facing with a huge problem. Lawmakers was discussing 2
bills in the National Assembly to protect traditional stores from SSMs. Which will hurt Homeplus’s
growth effectively.
ii. What were some specifics of the problem?
- The first bill: Required permission from the local government to open an SSM within 500
meters of a traditional outdoor market.
- The second bill: The small store owners can request a temporary closure of a SSM if they could
prove that they had harmful effect on their business.
- A new law was introduced in March 2012 forced large retailers close their stores on the second
and fourth Sunday every month.
iii. Were there any other aspects that increased the complexity of the
problem?
- The recent global economic recession and price inflation for public goods had caused a decrease
in consumer’s disposable income.
b. The Solution
i. How did the problem get solved?

- Set up a team solely dedicated to seeking permissions for SSMs in case the first bill gets passed
until they find a long-term solution.
- Plan the store locations in such a way that they are accessible to multiple localities and support
them with delivery.
- Offer online delivery services with inventory in the SSMs even on the days the stores are closed.
- Set up a centralised delivery system that connects SSMs with customers and using which they
can get delivery from anywhere.
- Set up a delivery service for faster and efficient delivery by Homeplus—something that the
other small stores lack.
- Get more involved in the community and build connections with the locals. If possible, give
franchise rights to the locals.
- Create a decision-making system that gives more autonomy to local store owners for taking
decisions on the items to be sold in the local stores.

ii. Was it a simple or complex solution?

Those were simple solutions based on Homeplus’s strengths and provide what customer needs.
Ex: Providing delivery service via online app based on the behavior of young people, they just want
to spend time at home and use mobile phone after work.
 c. Keys to Success - Discuss the main steps necessary for
your business to be successful.
- Follow up market trends and consumer’s behavior.
- Recognizing the opportunities.
- Reviewing internal force and finding out the solution.
- Offering what consumers really need.

Conclusion
1. What was Tesco’s strategy to enter the Korean market? (Can include background of Tesco)
In what way did it help them in comparison to its competitors?
Tesco recognized the importance of understanding and adapting to local customer preferences and
cultural norms. As such, the company conducted extensive research on Korean consumers and the
retail landscape in South Korea. Based on this research, Tesco developed a unique strategy for
Homeplus that focused on providing a convenient, one-stop shopping experience for customers,
with a particular emphasis on fresh food and high-quality private label products which helps them
to defeat Walmart and Carrefour.
2. What were the difficulties faced by Tesco in the Korean market venture?
How did Homeplus overcome it?
Tesco faced a lot of difficulties, such as: cultural differences, intense competition with chaebols, the
laws in retail market from the Korean government, operational challenge. Homeplus overcome
those difficulties by localization strategy, following up market trends, flexibility in business.
3. What were the strategies applied by Homeplus to get rid of customer bias against foreign
companies?
How did Homeplus compete with the ‘Chaebols’?
- Homeplus used localization strategy to compete with foreign giants
- Private label product and SSM – the new model of retail are Homeplus’s weapons to compete
with Chaebols
4. How is Homeplus planning to compete with the upcoming challenges in the Korean market?
- Digital transformation: launching mobile app to help consumer buy good conveniently.
- Utilize E-commerce platform: e-commerce is a potential channel in future.
- Keep improving private label good’s quality.
- Focus on sustainability and social responsibility.