SK Telecom (A): Leveraging Home Market Advantage

Against tight financial constraints and a small market base, SK Telecom (SKT), South Korea’s largest mobile telecoms company, was offering some of the world’s most innovative, leading-edge wireless services, by the end of 2001. Earlier that year, the company had developed its long-term strategic vision, identifying globalisation as the ultimate aim. However, despite international acclaim for its technological advances, SKT had limited experience outside its home market. The case explores the company’s initial efforts to venture into overseas markets, and overcome competition from leading international players, and to find a successful business model for international expansion in the turbulent environment of the global mobile communications industry.

The case explores the advantages of leveraging local market leadership, as a base for international expansion, and the alternative strategies that can be adopted to exploit these advantages in the different business models emerging among leading international players. The case also illustrates the use of alliances and acquisitions to execute various strategic options available in a high potential, but increasingly uncertain, global market.