MANAGEMENT

02
Home Appliances Cookware Beverageware
VISION Enhance daily life through
innovative technology & thoughtful design [17]

Internal environment
MISSION
Healthier, more convenient lifestyle creator [17]
Lessen discomfort - add safety [17]

S A E
CORE VALUE
Create products that are functional, high-quality & convenient [17]
#convenient #safe #healthy #comfortable Contribute to an improved quality of life for customers [17]
Organizational Culture

01
1998 - 2005 2018 - Now
[18]
Brand Integration & Growth Asia’s No.1 Houshold Goods Corp[18]
“Quite a good job”
[14]

Launched four - sided airtight Acquired by private equity fund,

External environment
Respect each other no matter grade/gender/background/nationality locking system food container Affinity Equity Partners (AEP)

>

T G
Share the same goals even though we have different roles

Think about ways to find solutions rather than say “this doesn’t work”
ent
1978 - 1997 1998 - 2005 opm
1. Economic growth (GDP) Respect “differences” rather than say “it’s wrong” [18]
vel
1. Government policies 1. Consumer preferences
[8]
Establishment Global Operation[18] e
+ Policy making and regulations depend on local governments 2.6% (2022) - 1.4% (2023)
[44]
: (-) less favorable economic environment Prefer reusable, BPA-free and environmentally friendly products Established Kukjin Retail Listed on KOSPI D
MACRO: PESTLE analysis

(+) strengthen market position 2. Demographic changes Freely share thoughts and listen with an open mind
(The Korea Composite Stock Price Index)

VRIO
+ Taxation: (1st retail outlet)
Income tax rates: 45% (2024) → higher tax environment
[41] 2. Exchange rates + Population size & growth rate decline
[33]
[42]
1,324.67 KRW = 1 USD (23/8/2024) + Demand for high-quality, durable products remains steady
[33]
Higher carbon taxes: reduce carbon emission
→ (+) Lower import costs and potential competitive advantage + Online shopping trends: strong online marketing strategies Evaluation

P E S
& promote eco-friendliness [13] [35] [36]
in domestic market. (annual growth averaging 22.5% for 2012-2021) [16] [16]

Tangible Intangible

R E S O U R C E S
→ sustainability issues Difficult/ Exploited
(-) Lower competitiveness in global markets 3. Cultural Influences Resources/ Competitive
2. Political stability
Ranked 42/163 countries in Global Peace Index [9]
3. Interest rates
[7] co + Emphasized Hygiene & Safety ocio Capabilities
Valuable Rare Costly to by Organ
Implications
3.5% (22/8/2024) → higher borrowing costs Imitate -ization?
olitical nomic cultural
+ Gift-giving culture
→ stable political environment and potential impacts on consumer spending Financial Physical Technology Reputation

2023 2022 2022 Tangible Competitive

D O M E S T I C
1. Regulations Equity Brands Resources disadvantage
Capital
+ South Korea - global leader in automation and + Consumer protection law 1. Climate change 6,018 1,541 60 525
technological advancement [39]
[43] 543,3 Properties, plants & Registered
Globally
Renowned Sustained
+ Standards & Specifications for Food Utensils, Containers & Package + Increased flooding (+17.4% rainfall - 2022)
[11]
1,016 Filling Intangible
[11] Equipment application Power Brand Resources competitive
+ Rising temperatures (+1.8°C) KWR
+ Ranked 2/176 countries in the International 2. Intellectual Property advantage
[46] → Disrupt supply chains and resource availability (bil) O V E R S E A S
Telecommunication Union (ITU)’s 2017 ICT Development Index Patents, trademarks & design rights are protected by KIPO [14] Sale Profit

IO
T L E
→ Counterfeit and imitations are partially prevented 2. Resource Scarcity
4,848 1,725 109+ 193 1,199 Inbound Competitive
→ Advanced digital economies in the world Logistics parity
Stores (worldwide) Registered
ech
Water shortages & energy efficiency pressures Filling
nviron
3. Labor Law 364 357
[10]
+ Fair wages & safe working conditions must be ensured application
2023 2023 2022 Competitive
nology egal ment

V cAh aL iUn E
+ Minimum wage (2024): KRW 9,860 per hour[10] Operations
parity

Support activities Outbound Competitive

New Entrants Supplier Power Primary activities
Infrastructure
Logistics disadvantage

High entry barriers:

Rivalry
Demand in giving the highest quality
[27]
Outbound Logistics Reinforced Security for Information & Personal Data
Inbound Logistics Partner with 1000+ distributing entities. Distribute Established autonomous safety management system [27]
Marketing Competitive
Highly centralized market, with major players such as LG, → Company negotiate through a dominant
forces

Purchase raw materials 100%

[22] their products through online (913), offline (83), and Research & Development
and Sales parity

R
Samsung, Panasonic, etc making up 50%[40] of the industry’s
Porter’s55forces

1.Number of competitors
approach The overall attractiveness Reuse raw materials → Percentage of total renewable raw overseas (131) channels [22]
[22] Ratio of research & development expenses to sales equals
market share

LocknLock
Switching cost : Steel is one of the most materials used in South Korea is nearly 70% [27] Establish a collection channel online and offline
“South Korea's home appliance market is highly competitive”
of the market Marketing & Sales
0.74% (2023) indicating agressive pursuit of innovation [27] Temporary
→ Dominant firms often have significant resources, - SPER Market Research 2024
[38]
used materials[37] with 111 steel suppliers Conducts annual ESG evaluations of its partners [27] Use biomass & eco-friendly materials as raw materials
[22]
Service
+ 4 evaluation items: Environment, Human Rights & Labors, Strengthen product competitiveness & brand power [26]
Application of technology for recycling raw materials
[27] competitive
economies of scale, and established customer bases Major competitors domestic market: [4] globally (excluding branches) in 2021 [45] [5] Ethics & Governance, Product & Service Support [27] Sales in Korea account for 25% of total company sales
Increasing product recycling for resource circulation
[27]
advantage
→ High barriers for new entrants to enter and compete LG Electronics Panasonic Corporation → Many suppliers Watch out for rivalry among Monitors & reduces raw material usage [27] (2022) [22]
Eco-friendly and lightweight packaging [22]

Samsung Electronics → LocknLock strictly inspects all products for their Ranked 1st in K-BPI for 19 consecutive years
→ Low switching costs Temporary
[22]
Haier Electronics Group Co. Ltd competitors and buyer power, Researching bioplastics and eco-friendly products
High capital requirements: machinery, technology, Whirlpool Corporation chemical harmfulness and risks [27] (Airtight container field) [22] Infra
and high costs (inventory cost, cost of damage,...) as well as economic and Enhances recyclability [27] Ranked 1st in K-BPI for 6 consecutive years Human Resource Management
-structure competitive
→ More competitors in an industry → Fight for market share

V
Level: Weak environmental threats Substituting raw materials with eco-friendly materials
[22] (Kitchenware field)[22] Publicly disclosing human rights policies[28] advantage
→ Difficult to afford the necessary investment, → price wars, aggressive marketing, continuous innovation → fiercer rivalry
MICRO:Porter’s

+ Chemically recycled plastic (CR-PP) was introduced LocknLock created an economic - 500.8 billion KRW [27] Providing human rights education to employees[27]
protecting established firms from competition 2. Industry growth Placed No.1 in the Korean Standard Well-Being &
into one of the core products, “LocknLock Classic” [22] Conducting human rights impact assessments[27] Human Sustained
Annual growth rate: 4.00% (2024 - 2032)[4] The industry has many Environment Index (KS-WEI) in 2021 [22]

Substitutes
Establish a collective agreement [27]
Operations Resource competitive
Level: Weak South Korea Home Appliances Market [4] opportunities but the threats Service Establish a Code of Conduct for Suppliers [24]
Low growth rates Use the three-layer product packaging [22] Regular donation of goods for recycling of resources
[27] +5 areas and 25 detailed items [24] Management advantage
must be understood
Market size in Billion $

[22] [27]
More intense competition as Most of the packaging materials are well-recyclable Cooperate with organizations, non-profit organizations, + Labor and Human Rights area with 7 detailed items[24]
Ziplock bags, Plastic bottles, Disposable
Buyer power
[5] Use may air caps or styrofoam (EPS) as cushioning materials
[22]
companies have to compete for Implement safety and preventative measures[27]
→ and civic groups to promote sustainability [27]
Competitive
limited market share and food containers as substitutes for water With undifferentiated products, Workers are professionally trained, educated, consulted
[27]
Technology
number of customers
bottle, food container, lunch box. parity
The industry’s products are undifferentiated: firms within the electronics
MICRO:

2019 2032
→ Easily switch to those alternatives industry must focus on other
+ Buyers easily switch suppliers without losing value

04
3. Exit barriers
+ Heavy investments in specialized fixed assets and

REFERENCES
+ Force suppliers to provide more competitive price and strengths like brand loyalty to
sophisticated machinery Specialized products (cooker, blender,
quality gain a sustainable competitive
+ Costly for players to quit the industry
Low switching costs: toaster...) that are not easily replicated advantage.
& leave the entire setup

Strengths Weaknesses
+ Switching without incurring significant expenses by other products.
+ Force suppliers to provide more competitive price and Level: Strong → Fewer direct substitutes
1. Anon., 2016-2025. South Korea Household Products Market Summary, Competitive Analysis and Forecast, 2016-2025. [Online] Available at: https://www.leadingmarketresearch.com/south-korea-household-
products-market-summary-competitive-analysis-and-for
[Accessed 5 September 2024]
quality to retain customers 2. Anon., 2024. South Korea Household Products Market Summary, Competitive Analysis and Forecast to 2028. [Online] Available at: https://www.researchandmarkets.com/reports/5927664/south-korea-household-

Level: Moderate
products-market?srsltid=AfmBOooP7pVs3o505FMggG3DKDlVUxHw6hvbnPDqAHGdd0GwYJafrDf6
[Accessed 6 September 2024]
1. Premium prices compared to other brands

TOWS
3. ARETE Industries, 2022. Blog. [Online] Available at: https://areteindustries.us/hdpe-plastics/

S
Level: Strong

W
1. High brand awareness globally & credibility [Accessed 30 August 2024]

2. Overdependence on food storage 4. Chaudhary, T., 2024. South Korea Home Appliances Market Research Report Information Product - South Korea Market Forecast Till 2032. [Online] Available at:
https://www.marketresearchfuture.com/reports/south-korea-home-appliances-market 21428#:~:text=The%20South%20Korea%20Home%20Appliances,period%20(2024%20%2D%202032)
2. Well-trained, nurtured workforce [Accessed 30 August 2024]
containers and drinkware 5. Daniel, M. et al., 2011. Electrical and Electronic Appliance, Television, and Radio, s.l.: Team Animal House Nerds.

3. High-quality and various products 6. Gratton, P., 2024. Porter's Five Forces Explained and How to Use the Model. [Online] Available at: https://www.investopedia.com/terms/p/porter.asp

3. Limited distribution network [Accessed 27 August 2024].

trengths eaknesses Strategy

7. Investing.com, 2024. South Korea Interest Rate Decision. [Online] Available at: https://www.investing.com/economic-calendar/south-korean-interest-rate-decision-473
4. Strong R&D systems [Accessed 30 August 2024].
4. Insufficient marketing campaigns 8. Jobst, N., 2024. Willingness to pay more for sustainable and environmentally-friendly products in South Korea as of December 2023. [Online] Available at: https://www.statista.com/statistics/1320792/south-korea-
willingness-to-pay-more-for-sustainable-products/#:~:text=According%20to%20a%20survey%20conducted,produced%20or%20environmentally%2Dfriendly%20packaged.
[Accessed 28 August 2024].
9. KBS News, 2023. S. Korea Ranks Just outside Upper Quartile on Global Peace Index. [Online] Available at: https://world.kbs.co.kr/service/news_view.htm?
lang=e&Seq_Code=178825#:~:text=According%20to%20the%202023%20report,of%20one%2Dpoint%2D763.
[Accessed 4 September 2024].
10. Kim & Chang, 2023. The Minimum Wage For 2024 is Set at KRW 9,860 Per Hour. [Online] Available at: https://www.kimchang.com/en/insights/detail.kc?sch_section=4&idx=27751

LocknLock's powerful brand image solidifies its leadership in Korea Over-reliance on core products (food containers, drinkware)
[Accessed 4 September 2024].
11. Korea Meteorological Administration, 2024. [Online] Available at: https://www.kma.go.kr/neng/index.do
[Accessed 4 September 2024].

The company's global reputation attracts talent to its headquarters in Korea

SO WO
12. KoreaPro, 2024. South Korea’s 2025 budget proposal prioritizes innovation, future technologies. [Online] Available at: https://koreapro.org/2024/03/south-koreas-2025-budget-proposal-prioritizes-innovation-
limits innovation in new offerings W2O3: Building new facilities for food
Opportunities
future-technologies/
[Accessed 5 September 2024].
S134O1: Developing multi-product lines 13. KPMG LLP, 2024. Korea: Tax Reform Proposal for 2024. [Online] Available at: https://kpmg.com/us/en/taxnewsflash/news/2024/08/tnf-korea-tax-reform-proposal-2024.html
As a major player in its industry, LocknLock holds a significantly larger Premium pricing makes LocknLock less accessible to many storage containers and beverageware
[Accessed 28 August 2024].
14. Kwon, Y. M., Ryoo, H. G. & Ahn, S. T., 2024. Recent IP Developments In Korea - February 2024. Mondaq, p. 4.
with many options and prices 15. Kyu-won, K., 2019. South Korea’s leading industries feeling the heat of competition from China. [Online] Available at: https://english.hani.co.kr/arti/english_edition/e_business/750516.html
market share than its competitors consumers W3O2: Expansion in distribution networks
[Accessed 4 September 2024].
16. Lock & Lock, Co., Ltd., 2021. [Online] Available at: https://www.locknlock.com/eng/util/ethics/rule

1. Emerging e-commerce market S23O3: Building new facilities for food [Accessed 5 September 2024].
High-quality, durable, and eco-friendly products allow LocknLock to Marketing efforts are insufficient W1O1: Developing a new wide range of
17. Lock & Lock, Co., Ltd., 2021. About us: Lock & Lock, Co., Ltd.. [Online] Available at: https://www.locknlock.com/eng/about/csr
[Accessed 26 August 2024].
2. Collaboration with partners and distributors storage containers and beverageware 18. Lock & Lock, Co., Ltd., 2021. About: Lock & Lock, Co., Ltd.. [Online] Available at: https://locknlock.com/eng/career/culture

command premium prices Distribution is limited to major cities, leaving suburban and rural products with different prices in
[Accessed 26 August 2024].

3. Expansion in food containers and drinkware S4O4: Acquisition of green technology

19. Lock & Lock, Co., Ltd., 2021. LocknLock tops airtight container and kitchen goods category for 18 years and 5 years in a row in 2021 Korea Brand Power Index. [Online] Available at:
https://www.locknlock.com/eng/story/news/id/510

Strong research and development (R&D) efforts fuel ongoing innovation areas underserved 4. Investment in green technology international e-commerce platforms.
[Accessed 26 August 2024].
20. Lock & Lock, Co., Ltd., 2021. Story: LocknLock. [Online] Available at: https://www.locknlock.com/eng/story/news/id/505
S24O1: Expanding e-commerce [Accessed 26 August 2024].

5. Favorable import costs W4O12: Developing marketing strategies to

21. Lock & Lock, Co., Ltd., 2022. 2022 Management Performance Report, s.l.: Lock & Lock, Co., Ltd..

O
22. Lock & Lock, Co., Ltd., 2022. LocknLock 2022 Sustainability Report, s.l.: Lock & Lock, Co., Ltd..

T
6. Cultural influences offerings with personalization 23. Lock & Lock, Co., Ltd., 2022. LocknLock Certification, s.l.: Daishin Economic Research Institute.
24. Lock & Lock, Co., Ltd., 2022. LocknLock Code of Conduct for Suppliers, s.l.: Daishin Economic Research Institute.
increase its market share
Analysis

25. Lock & Lock, Co., Ltd., 2022. Main materials of representative products, s.l.: Daishin Economic Research Institute.
26. Lock & Lock, Co., Ltd., 2023. 2023 Q4 and Annual Management Performance Report, s.l.: Lock & Lock, Co., Ltd..
27. Lock & Lock, Co., Ltd., 2023. 2024 LocknLock ESG Report, s.l.: Lock & Lock, Co., Ltd..
28. Lock & Lock, Co., Ltd., 2023. LocknLock Human Rights Policy, s.l.: Lock & Lock, Co., Ltd..

pportunities hreats
29. Lock & Lock, Co., Ltd., 2024. About: Lock & Lock. [Online] Available at: https://www.locknlock.com/eng/about
30. Lock & Lock, Co., Ltd., 2024. Business information. [Online] Available at: https://www.locknlock.com/eng/util/investment-info/ir-book

ST WT
[Accessed 4 September 2024].
W12T2: Developing multi-product lines 31. Lock & Lock, Co., Ltd., 2024. Design Center. [Online] Available at: https://www.locknlock.com/eng/innovation/design-center
SWOT

Threats
[Accessed 4 September 2024].

S1T2: Meeting competition with new with many options and prices.
32. Lock & Lock, Co., Ltd., 2024. Product. [Online] Available at: https://www.locknlock.com/eng/product
[Accessed 30 August 2024].
33. Macrotrends LLC, 2024. South Korea Population Growth Rate 1950-2024. [Online] Available at: https://www.macrotrends.net/global-metrics/countries/KOR/south-korea/population-growth-
Emerging markets globally (e-commerce market,...) advanced technology rate#:~:text=The%20current%20population%20of%20South,a%200.03%25%20decline%20from%202021.
W4T1: Developing marketing strategies [Accessed 5 September 2024].
34. Nguyen, H., 2022. Chiế n lược Marketing của Lock&Lock – Thương hiệu đồ gia dụng được nhiề u người yêu thích. [Online] Available at: https://www.google.com/url?q=https://amis.misa.vn/52871/chien-luoc-

Collaboration with partners and distributors enables broader customer Consumer demand fluctuation impacts sales 1. Decreasing demand (worldwide recession) S234T3: Creating good products with
marketing-cua-locklock/&sa=D&source=editors&ust=1725170996820950&usg=AOvVaw2ImTYoh89O86bwjbz3SfOb

to overcome the decreasing consumer [Accessed 28 August 2024].

03

35. OECD, 2023. Effective Carbon Rates: Key findings for Korea, s.l.: OECD.

reach and strengthens relationships with suppliers, distributors, and Intense competition from international rivals threatens market share 2. Intense competition (globally & locally) competitive prices demand.
36. Oosga, 2023. E-Commerce in South Korea: Outlook & Retail Trends in 2023. [Online] Available at: https://oosga.com/e-commerce/kor/
[Accessed 4 September 2024].
37. Rockaway Recycling, 2023. Today's Prices. [Online] Available at: https://rockawayrecycling.com/types-of-metals-from-appliances/

customers 3. Growth of counterfeit products S1T1: Increasing product offering

[Accessed 7 September 2024].
and profit margins W2T1: Expanding investment fields other 38. SPER Analyst, 2024. South Korea Home Appliances Market Share, Trends, Revenue, Scope, Growth Drivers, Key Players, Opportunities and Future Competition Till 2033: SPER Market Research. [Online] Available at:

4. Substitute products https://www.sperresearch.com/press-release/south-korea-home-appliances-market.aspx

Expansion in food storage containers and beverageware S14T4: Product Providence: Block Chain
[Accessed 29 August 2024].
Imitation and fake products of lower prices reduce sales and than food storage containers/ 39. Spherical Insights, 2023. South Korea Automation and Industrial Control Market Insights Forecasts to 2032, s.l.: Spherical Insights.
40. Statista, 2024. Household Appliances - South Korea, s.l.: Statista.
41. Trading Economics, 2024. South Korea Personal Income Tax Rate. [Online] Available at: https://tradingeconomics.com/south-korea/personal-income-tax-
More investment in green technology development market authenticity Tracking to prevent/limit replica beverageware to alleviate risk rate#:~:text=The%20Personal%20Income%20Tax%20Rate,National%20Tax%20Service%2C%20South%20Korea
[Accessed 4 September 2024].
42. Trading Economics, 2024. South Korean Won. [Online] Available at: https://tradingeconomics.com/south-korea/currency
Favorable exchange rate lowers the import costs Substitute products [Accessed 29 August 2024].
43. Tsang, H., 2020. South Korea Proposes to Revise Standards and Specifications for Food Contact Materials and Articles. [Online] Available at: https://www.sgs.com/en-ch/news/2020/04/safeguards-05320-south-
korea-proposes-to-revise-standards-and-specifications-for-food-contact
Cultural influences create opportunities for product adaptation [Accessed 29 August 2024].

Types of Strategy
44. World Bank Group, 2023. GDP growth (annual %) - Korea, Rep.. [Online] Available at: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2023&locations=KR&name_desc=true&start=2017
[Accessed 4 September 2024].

Corporate/business-level Functional-level
45. World Steel Association, 2023. World Steel in Figures 2023. [Online] Available at: https://worldsteel.org/data/world-steel-in-figures-2023/
[Accessed 7 September 2024].
46. Yoon, D., Hyun, Y. & Kang, S., 2023. Digitalization: A Government-Driven, Infrastructure-First Approach. Global Solutions Journal, Issue 9, pp. 178-187.

GROUP 7