Aurora Beauty: Analyzing Entry Strategies for South Korea Market

This assignment focuses on Aurora Beauty's market entry strategy in South Korea, analyzing the cultural, economic, and competitive landscape to determine the most suitable mode of entry. The project recommends a strategic alliance or joint venture with a local South Korean entity, highlighting the benefits of shared resources, local market knowledge, and access to distribution networks. The rationale for this approach includes leveraging Aurora Beauty's Canadian natural ingredient strengths with the Korean market's demand for natural products. The assignment discusses financial strategies, emphasizing profit-sharing arrangements and the importance of understanding local laws and regulations. References to relevant academic literature support the chosen strategy, emphasizing the advantages of this mode of entry for successful market penetration and long-term profitability.

[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.

ii. Effective access over international customers
Being a domestic organisation, Korean entity have effective data regarding the consumer’s
demands, competitors strategies, and substitutes available to compete the products on the
base of pricing, ingredients and availability. These information and statics are not easily
identifiable for an outsider firm or business hence it is essential to tale deep knowledge about
the market before expanding own franchisee in the market (De Villa, Rajwani, & Lawton,
2015).
iii. Player in the competition
An already existing organisation in the same sector has recognition and image in the market
and same Aurora Beauty has in the domestic and international market due to using the natural
Canadian powder and oil in the cosmetic and beauty product. This is a profitable point with
the Aurora Beauty to beat the competition but it will lead the competition with effective
involvement of a pre-existing frim in the country (Park & Cave, 2018).
iv. Easy legal processing
Aurora Beauty is not a Korean company hence it has lack of understanding about the IP,
government policies and corporate laws regarding the business and operation in the country.
More effectively South Korean commercial law has no special definition or provision for the
joint venture and it is operated according to the general corporation act. Hence, partnership
with the Korean company can be very profitable to understand the local and international
trade rules for further expansion of the business (De Villa, Rajwani, & Lawton, 2015).
c. Financial strategy
A joint venture is based on the agreement that clearly state the financial activities clauses
clearly to avoid any dispute between the firms. There are many factors; a firm needs to

manage during the joint venture operations. Hence, a frim entering in the joint venture needs
to focus over
 Increase the resources
 Increase the capacity
 Involvement and access to a new market and distribution network
These all needs effective management of fund raising and utilizing activities. This venture
will take part in the profit based partnership hence both parties will raise the fund equally,
and will sing an agreement to share the net profit after deduction of the charges and other
expenses equally or same they will need to do with the loss (Aguir & Misra, 2017). Aurora
Beauty can use manage share based partnership as well but due to high risk of failure in the
joint venture a partnership of shared profit and loss is perfect to lead successfully for a long
term journey.

References
Aguir, I., & Misra, L. (2017). wnership level choice and value creation in international joint
ventures: The role of investor protection. International Review of Economics &
Finance, 515-535.
De Villa, M. A., Rajwani, T., & Lawton, T. (2015). Market entry modes in a multipolar
world: Untangling the moderating effect of the political environment. International
Business Review, 419-429.
Froese, F. J. (2019). Doing Business in Korea. Abingdon: Routledge.
Hanson, S. (2019). The Multiplex in Japan, South Korea, and China. In Screening the World
(pp. 233-251). Palgrave Macmillan, Cham.
Kim, J. (2018). Market entry strategy for a digital platform provider. Baltic Journal of
Management.
Park, B. I., & Cave, A. H. (2018). Corporate social responsibility in international joint
ventures: Empirical examinations in South Korea. International Business Review,
1213-1228.