4 BRICs Brazil, Russia, India, China VISTA Vietnam, Indonesia, South Africa, Turkey, Argentina BRICs 2009b 2011 competence Sensing competence Rumelt,

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1 3 technology competence customer competence linkage competence 3 SCM Supply Chain Management Product Architecture and Emerging Market Strategy: Comparative Studies of Japanese and Korean Firms YoungWon PARK We focus on global strategy of Japanese and Korean global firms in emerging markets including BRICs, using three competences and product architecture framework. Successful Japanese global firms in these markets do not merely implement their domestic strategies, but also adopt a set of business strategies that effectively sense the target market needs and apply their technology competence to supply component parts through local suppliers in the target market regions. Japanese global firms thus make full use of open-integral architecture strategy utilizing linkage competence that combines both technology competence and customer competence in penetrating the emerging markets. In contrast, Korean global firms focus on open-modular products and implement brand differentiation in response to rapidly changing product life cycle (PLC) of their products. These differentiation strategies include design differentiation, functional differentiation by diverse markets, timely deployment of strategic products, and integration of production and marketing through supply chain management. : Product architecture, Emerging market strategy, Competence, Open-integral architecture strategy 17

Successful Japanese global firms in these markets do not merely implement their domestic strategies, but also adopt a set of business strategies that effectively sense the target market needs and

2 4 BRICs Brazil, Russia, India, China VISTA Vietnam, Indonesia, South Africa, Turkey, Argentina BRICs 2009b 2011 competence Sensing competence Rumelt, 1984; Barney, 2002 Core competence 2009a Smith, 1776; Schumpeter, 1934; Coase, Hamel & Prahalad Hamel and Prahalad, 1990; Morone, 1993 Hamel and Prahalad,

Barney, 2002 Core competence 2009a Smith, 1776; Schumpeter, 1934; Coase, 1937

3 competence trap core incompetences core rigidity March, 1991; Leonard-Barton, 1992; Henderson, 1993; Daugherty, 1995; Helfat and Raubitschek, 2000; Dougherty and Heller, 2000; Danneels, 2002 Abernathy & Clark 1985 Hamel & Prahalad ; dynamic capability theory Teece, 1986; Teece et al., 1990; Utterback and Suarez, 1993; Teece and Pisano, 1994; Henderson and Cockburn, 1994; Teece et. al., 1997; Miller and Morris, 1999; Eisenhardt and Martin, 2000; Zollo and Winter, 2002; Zott, 2003; Lopez, 2005; Helfat et al., 2007; Teece, 2007; Quinn and Dalton, 2009 Knowledge assets Dynamic Capabilities knowledge assets Teece, 1986; Helfat et al., 2007; Quinn and Dalton, 2009 stretch leverage Hamel and Prahalad 1994 Ritter & Gemunden 2003 qualification Ritter & Gemunden 2003 Danneels 2002 Ritter & Gemunden 2003 Danneels

, 1990; Utterback and Suarez, 1993; Teece and Pisano, 1994; Henderson and Cockburn, 1994; Teece et. al.

4 4 linkage competence Ulrich, 1995; Fine, 1998; Baldwin and Clark, 2000; Fujimoto, 2003;

5 Fine, 1998; Fujimoto, Christensen et al., 2002 Linkage Competence 3 21

6 4 A BRICs A A A 80 A A Wave Wave100, Wave 125, Wave Z, Wave PCX A H A H A A B B B 1997 TKM 22

7 Etios B Etios Etios B Etios B Etios Etios TKM 1 Innova Etios Etios C C

8 cm 45cm LG C PC IT PC D PC D HP Hewlett Packard HP56 D 22 D 84 D D thermal printer D 24

9 D IT D D E F 1995 E 1996 E 1 E 1999 PLC Product Life Cycle E E SCM SCM PLC SCM 2000 SCM E E SCM E SCM EDI Electronic Data Interchange SCM SCM SCM

PLC SCM 2000 SCM E E SCM 2000 2008 2008 E SCM EDI

10 4 50 SCM 3 SCM E SCM PLC F 1997 F 1 PC GSM 3 F F 5 F F R & D R & D R & D F 1 F 1 15 LG F 10 F F 26

11 F 3 technology competence customer competence linkage competence 3 E R & D R & BD Research & Business Development E 27

12 4 E F 3 E F PLC PLC SCM Supply Chain Management 3 technology competence customer competence linkage competence BRICs SCM Supply Chain Management B 28

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