Tom+chee in Taiwan

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see social stability as an attractiveness of Japan (Jetro, 2014). So it may helpful to expanding the business in Japan without consideration about the social environment.

Disadvantages

There are also some disadvantages for TOM+CHEE to invest in Japan:

• The Japanese economy situation was getting worse since 2008 global financial economy shock. There was ZERO foreign company had IPO at Tokyo Stock Exchange market since 2008.

• Foreign companies have to follow the cumbersome procedures, regulation, and law in Japan. These operations should take long time to build.

• The labor cost of Japanese is pretty high almost same with United States.

• A high degree of thoroughness in evaluating new products and technologies, which results in long assessment periods and slower the decision making.

• Cultural habits and belief differences could create problems for doing business in Japan, because it might lead to damaging and costly mistakes within inappropriate packaging and marketing.

South Korea

South Korea is a sovereign state in the East Asia, and oversea borders with Japan to the east and China to the west. In 1995, South Korea successfully transformed into a high income advanced economy and the world’s 11th largest economy. Today, South Korea is East Asia’s highest ranked developed country in the Human Development Index (Demick, 2003). Therefore, South Korea is one of important target country to expand TOM+CHEE.

Advantages

Here are several advantages if TOM+CHEE wants to expand business in Korea:

• Roughly half of the South Korea’s 50 million people reside surrounding its capital, the Seoul Capital Area which is the second largest in the world with over 25 million residents. So, we will focus more on Seoul area to expand TOM+CHEE.

• In 2015, the GDP (purchasing power parity) of South Korea was estimated by $1.435 trillion with ranked 13th in the world. South Korea citizens have Asia’s highest median per-capita income and average wage with the world’s 8th highest household income.

• In the 2000s, South Korea is the one of the fastest-growing developed countries. The South Korean economy is heavily dependent on international trade, and in 2014, South Korea was the 5th largest exporter and 7th largest importer in the world.

• The government of South Korea currently offers tax relief to foreign companies with the potential to make major contributions to the Korean economy. Meanwhile, the government supplies foreign companies with site location and acquisition, and provide cash grants and other types of financial support.

• South Korea is well established in terms of seaports, airports, roads and rails.

• South Korea is one of the most ethnically homogeneous countries in the world.

• South Korea is very safe that guns are completely illegal among civilians, and petty theft is also extremely rare.

• South Korea has a universal healthcare system and, as long as you have a work visa and a job, you are covered.

Disadvantages

• South Korea suffers damage to its credit rating in the stock market because of the belligerence of the North Korea military crises, which has adverse effect on South Korea financial markets.

• The rental payment is going to be excessively expensive.

• South Korea has bad weathers for having extreme winters and summers.

• Culture barrier is a factor for doing business in South Korea, because respect for one’s elders is hugely important in Korean culture.

Taiwan

Taiwan is a type of island country in East Asia, and it is one of the most densely populated countries in the world. In Taiwan, the international trade is a primary economic resource. During the latter half of the 20th century, Taiwan experienced rapid economic growth and industrialization. Now, Taiwan is an advanced industrial economy. Moreover, Taiwanese advanced technology industry plays an important role in the global economy; it exports lots of electronic products to the overseas.

Advantages

• Taiwan has a comprehensive industrial cluster, excellent manpower quality, and superior innovation capabilities.

• The development of Taiwan financial market has become mature, because the personal savings rate reached 31.6%, the production value of the financial services industry accounted for about 14.9% of the GDP in 2010.

• The labor cost of Taiwan is much lower than United States, and it also has higher educated workforce within 43.7% of the workforce from college, university or higher education background.

• Taiwan has a complete international transportation facilities and logistic capability.

• Taiwanese government is highly protect the foreign companies by providing clearly written regulations.

Disadvantages

There are few disadvantages for the TOM+CHEE company to expanding the business in Taiwan:

• Because of the exchange rate fluctuating, there is a risk business trading in Taiwan currencies, it may not be able to forecast finances.

• Taiwan is short of labor because the age is getting older now.

• Taiwan’s market is probably small, and many companies have moved to China or South-East Asia to invest.

Justification of the Chosen Alternative

After analyzing the three countries Japan, Korea and Taiwan, our team believes Taiwan is the best choice for the TOM+CHEE Corporation to expand business to overseas countries. Taiwan owns most advantages like good transportation system, and is one of the world’s trading powerhouses and offers an attractive environment for foreign investment.

At first, Taiwan located at the heart of the Asia- Pacific region with a dense and concentrated population. Taiwan is the hub of the dual golden routes that the routes from Taipei go north to Tokyo and Seoul, west to Shanghai, south to Hong Kong. Doing business in Taiwan is an ideal choice for locating logistics centers and operational headquarters.