Research On The Development Strategy Of Shilla Duty Free Shop In South Korea

Affected by economic globalization and the booming development of the global tourism industry,the global duty-free market continues to expand in size and presents bright growth prospects.Thanks to the continuous expansion of the global duty-free market and the favorable development environment of the Asian duty-free market,the Korean duty-free industry has gradually become an important part of the global dutyfree industry.As one of the two giants of the Korean duty-free industry,the Shilla Duty Free Korea has sales of 5.457 billion euros in 2018,becoming the world's secondlargest duty-free shop in South Korea and the third in the world.However,in recent years,the South Korean government has continuously increased the number of dutyfree concessions,which has caused the domestic duty-free industry to enter a saturated state of competition.In addition,after the "THAAD",the number of Chinese tourists traveling to South Korea has decreased significantly,and the development of the Shilla Duty Free Shop is facing huge challenge.In order to ensure sustainable development,the Shilla Duty Free Shop urgently needs to formulate a development strategy in line with market development and its own advantages and disadvantages.Based on this,the research in this article uses the theory and methods of strategic management to first analyze the development status and the problems and causes of Shilla Duty Free Shop.The main problems facing Shilla Duty Free Shop currently include excessive dependence on Chinese consumers,global Limited layout and low sales profit.The reason is that the Shilla Duty Free Shop concentrated in the Korean domestic market,has a single operating channel,and has a slow strategic expansion.So,this article further analyzes the external environment of the Shilla Duty Free Shop from the perspective of the macro environment and the industry environment by using the strategic analysis tool PEST analysis method and the Porter Five Force Model.At the same time,the qualitative analysis method was used to analyze the internal environment of the Shilla Duty Free Shop,and then the SWOT analysis tool was used to discuss the strength,weakness,threat and opportunities of the Shilla Duty Free Shop and the type of business strategy of the Shilla Duty Free Shop is SO growth strategy.Finally,this article formulates a market development strategy suitable for the development of the Shilla Duty Free Shop based on the above analysis results.The implementation plan of the Shilla Duty Free Market development strategy includes: Implementing a merger and acquisition strategy to expand the market size;Build an omni-channel model to enhance competitiveness;Enter overseas markets.In addition,this article also provides safeguards for the plan,that is,to ensure the quality of strategy implementation by optimizing the structure of the Shilla Duty Free Shop,providing financial support for the strategy implementation of the Shilla Duty Free Shop,and absorbing and training outstanding talents.The research in this article integrates the theory of strategic management into the strategic choices of duty-free shops,so that Shilla Duty-Free Shops can find the strategic solutions and safeguards that are suitable for them in the changes of the internal and external environment,give play to their core competitiveness,and promote the company's sustainable and healthy development.In addition,the research in this article can provide a reference for the development of China's duty-free industry,and it is also of great significance for the development of China's duty-free industry.Therefore,it is of theoretical and practical significance to analyze the internal and external environment of the Shilla Duty Free Korea and its development strategy.