Growth Strategy of Small and Medium-sized Enterprises: Focus on Ice Machine Manufacturers in South Korea

The purpose of this study is to examine possibility of overseas expansion of Small and Medium-sized Enterprises (SMEs) by focusing on the growth strategy of three Korean ice machine manufacturers in South Korea as case studies. Prior to 1990, Korea depended on imports of ice machines from mainly Europe, Japan, and the United States. The ice machine business, which relied heavily on imports, started production from domestic SMEs as the demand for ice increased and the market for ice machine distribution expanded. Currently, the ice machine manufacturers in Korea are intensifying their competition not only with the production of the products but also with the importers that have prevailed in the after-sales service market. This study extends the previous pilot study on G Company, which is considered as a company falls under the among 5 ~ 10% of SMEs strategically affected by global competition. In the process, I and N companies in the same industry were compared. The SMEs’ ability to advance into the global market will be studied through the cases of Korean ice manufacturers by applying the Global Business Strategy Framework proposed by Philippe Lasserre. For the expansion of new products and market, challenges to internationalization of SMEs should be considered. SMEs, such as G Company, which is under pressure to maintain competitiveness not only in the domestic market but also in the global market, is in the midst of a constant change of competitive paradigm due to global competition, distribution, communication, and marketing. The findings of this study suggest that SMEs such as G Company, I Company, and N Company that are trying to achieve globalization, need a global strategy design to strengthen their growth strategies, even if global strategy designs are not comprehensive as major corporations. This study suggests ice machine makers collaborative commerce and B2B integration that can help electronically engage business enrichment among internal personnel, business partners and customers across the trading community. The practical suggestion is only possible with the policy support and the establishment of infrastructure.