Daewoo Cars: Changing the Rules about How to Compete

I. Introduction Daewoo-the South Korean corporation- was highly successful launched in entering the UK car market. It was successfully selling 35,000 vehicles in less of two years. This corporation continuously invests for £ 700 million in setting up a car factory in Britain, which considered to the large scale investment in design, development, and marketing and sales. In preparing the car launched, they were promoting themselves as ‘the biggest car company you’ve never heard of’. Daewoo was the second Korea’s bigger car maker and the 33rd largest business group and also has an aggressive plan for expansion and globalization. The pre-launched was stated the Daewoo presence and the market strategy in controlling the distribution chain by dealing direct customers. Daewoo’s market position was based on an innovative packaging of benefits and services around the car, a totally new approach to distribution, and the customer’s purchasing experience, and an emphasis on customer service. For evidence, Daewoo achieved 0.9 percent share of UK new car market by selling 10,000 vehicles within six month. The competitiveness in UK market car was fiercely challenging. According to the market research by Daewoo, motorist found that traditional motor dealers were not making customers feel welcome. The researches also found that one third of buyers were women. This market opportunity was used by Daewoo in implementing the marketing strategies that would be based on customer service and customer’s term, delivering by direct selling, and highly advertising in building the image of value and customer service. Daewoo was creating a sensational market strategy in getting brand awareness of the market. In its strategy, Daewoo was involving the product strategy by including such three years fee servicing,