In late 2022, E-Mart, South Korea’s leading supermarket chain, had pulled out of major Asian markets such as China and Vietnam after experiencing poor performance, and the company planned to expand into the US market. In the Asian markets, E-Mart relied on a direct entry mode, but in the US it changed its mode of entry by acquiring local companies and planning to open new grocery brand stores. Although the US market has substantial growth opportunities due to its large size, it is not easy to succeed there because of limited profit margins and fierce competition. Could E-Mart establish a foothold in the US supermarket and grocery store industry? What strategies should it develop to succeed in this new market?
MGM Resorts International (MGM), a global hospitality and entertainment company operating in various locations, including Las Vegas, faced a choice between profitability and responsibility. The company needed to attract as many customers to its casinos as possible to increase its profits from gambling. However, MGM had also been advancing an image of an ethical corporation by promoting its responsible gambling program, which was meant to discourage overspending on gaming activities. Should MGM choose to profit by attracting more customers who are willing to spend money at its casinos, or should it profile its image as an ethical company and promote its responsible gambling program? Was there a way to do both?
In March 2021, the chief strategy officer of Green Car Inc. (Green Car), an on-demand car-sharing services company, was contemplating the company’s strategic direction. In an on-demand car-sharing services model, a company owned vehicles and received a fee from consumers who borrowed those vehicles. The strategy of Green Car’s main competitor was to maximize its platform competitiveness by aggressively expanding its operational scale and scope, even if it meant incurring financial losses. In contrast, Green Car tried to achieve a balance of growth and profitability, which had resulted in continuous profits. The company now faced an important question for the company’s overall strategic direction: growth or profitability? Which strategy would be successful in the end?