Designated Writer: CHONE JAE HUN
Supporting Writers HWANG JI WON JISUK MIN KIM KWAN JUNG
Designated Writer: CHONE JAE HUN
Supporting Writers HWANG JI WON JISUK MIN KIM KWAN JUNG
Opportunities and Threats in Long term Marketing Environment.
Yuhan-Kimberly, one of the oldest companies in South Korea, has been a great success since it was founded in 1970. It was established as a joint-venture company in order to avoid the pressure of dictatorial government. However, the venture enabled Yuhan-Kimberly to employ the manufacturing technologies of Kimberly-Clark. With these technologies, Yuhan-Kimberly started businesses in fields such as toilet paper, facial tissues, and feminine napkins. The company expanded surprisingly grabbing several opportunities caused by economic and demographic changes and it is now considered as a company which has obtained legendary success.
Even though it has succeeded ever since it was formed, Yuhan-Kimberly is still facing some threats. First threat arises from demographic change. In the past, especially in 1980s (when a birthrate per married couple was about 4.0), the demographic status in South Korea was major factor that enabled Yuhan-Kimberly to succeed in a domestic baby diaper market. However, the situation has been changed and will change drastically. According to data from KOSIS (Korea Statistical Information Service), the birthrate of South Korea will stay below 1.5 at least until 2060.(see EXHIBIT 1) It means that the baby diaper market which is the most lucrative for Yuhan-Kimberly is going to be shrinking. Unless Yuhan-Kimberly finds the market which substitutes for the diaper market, it will have to endure diminished profit.
Second threat comes from the formation of the company. As mentioned above, Yuhan-Kimberly is a joint venture enterprise. In a