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Publicēts: 26.08.2003.
Valoda: Angļu
Līmenis: Vidusskolas
Literatūras saraksts: Nav
Atsauces: Nav
Darba fragmentsAizvērt

The context for firm strategy and rivalry is the local context that encourages investment in innovative-related activities, completed by vigorous competition among local-based rivals. This is one important factor of Porter's diamond model. To an extent, the presence of strong local competition is the final, and powerful, stimulus to the creation and persistence of competitive advantage. In this section, the analysis will focus on some common strategies of Korean firms, and an evaluation of the intensity of competition in various industries.
A unique feature of Korea is the absolute dominance of Chaebols in the economy. Mostly established after the Second World War and Korean War, Chaebols have helped to shape Korean industry in particular, and the Korean economy in general. They have always been in government plans, and contributed a significant part in the "Miracle of the Han River". Because they receive strong support from the government, and social recognition, Chaebols are the examples of success for almost all firms in Korea. Hence, for a Korean firm, growth is essential, and is their driving force. It is even more important than profitability.
Though there have been some changes after the East Asian financial crisis, it takes time and resources to turn this trend around. However, the firms' preference of growing helps to promote innovation. Research has found that large companies possess a relatively higher level of technology (82%) than small and medium-sized companies (79%).

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