Competitive Environment of Business

[Type the company name]
Mode of Entry
part 3
SystemJP
[Pick the date]

3. Mode of entry
This part of the assignment will select method of market entry suitable for Aurora Beauty in
vast and growing market of South Korea. After determining the culture customers trend,
economic conditions, and about the competitive environment of the country now organisation
will plan make planning about entering in the market. Based on the market analysis and
customer perceptions management will try to select best mode of the entry for successful
return from investment (Aguir & Misra, 2017).
a. Entry strategy
Joint Venture or Strategic Alliance
There are many modes available for the expansion of a business in the overseas country, as
exporting the products, Franchising, Partnering, or Strategic Alliances. Based on the
discussion about the cultural practices and taste in the proposed South Korea country
Strategic alliance or Joint Venture is supposed to be profitable to enter in the market.
Strategic alliance or Joint Venture is a kind of business agreement that take place in two
business entities to enter in market with planned strategies to earn long-term profit from the
market. South Korea has high growth opportunities for the newly entering organisations in
the makeup and grooming sector because beauty and personal care is becoming essential part
of healthcare, it includes use of healthy and hygienic natural product to maintain the beauty
of face, hair, and lips for a long period (De Villa, Rajwani, & Lawton, 2015).
Partnership with local venture of South Korea will help Aurora Beauty to understand about
the customer taste, culture, economic strategies, and government policies regarding the
business and it will help the organisation to proceed according the legal framework of the
country. There are many successful or newly entrepreneur ideas of business in the South

Korea as K Beauty and many others. Entering with the Korean entities can make the
partnership profitable for both, that include strength of both organisational strategies and
productivity leadership. Aurora Beauty has effective control over the Canadian natural
ingredients useful for the natural beauty products, Korean market have effective demand for
the products filled with natural oils, and ingredients that have no or very less side effects over
the skin and lips of the users (Froese, 2019). Hence, two special characteristics, qualities,
and strength of two different organisations can fight the competition possible to come in the
market with the help of cooperation and coordination with each other.
b. Reason for choosing the strategy
There are many reason associated behind the selection of Joint Venture Partnership for the
Aurora Beauty with an organisation in the South Korea, these reasons are discussed after care
evaluation of strength and weakness of the joint venture method. Decision of Joint venture in
South Korea seems less profitable but effective control over strategic planning and careful
entry with legal formalities and understanding can make this a better decision for both
domestic and international organisations equally (Kim, 2018).
i. Instant access over distribution network
Aurora Beauty can sign a profit based partnership agreement or agreement on the bases of the
assets involvement or both, this can give early recognition to the products in the market,
because domestic frim have effective control over the supply chain and distribution network
(Park & Cave, 2018). Joint firm have understanding about the prices and accommodation
required to storage of the stock and possibility of demand rising in future. This is very
profitable because entering as new venture can be risky when it comes to supply chain and
distribution network.