Internationalizing concept or product? H. Stern Jewelers in Asia

Abstract

Purpose – The purpose of this paper is to offer instructors a real managerial dilemma faced by a prestigious Brazilian jewelry company as it decides how it should expand into two Asian countries: China and South Korea. Design/methodology/approach – The authors followed guidelines for developing teaching cases as those suggested by Gill's (2011) seminal contribution, Informing with the Case Method. Findings – Since this is a teaching case, there are no “findings” in the usual sense of the word related to traditional empirical studies. Research limitations/implications – Data for the case came mainly from the stated visions and opinions of the firm's spokesperson and may reflect his own particular (though influential) views. The authors also used public secondary data from consulting companies, market research firms and business magazines. Although these accounts may be partial, this is not a severe limitation since a teaching case is expected to provide some information, but not a full set of information, in order to better reflect real managerial situations. Practical implications – This case study may help students understand and “live trough” a real managerial dilemma, related to international expansion to a rather distinct environment from those the firm has been accustomed to. Originality/value – This teaching case brings relevant material for in-class discussion of a successful emerging market firm that has successfully paved its way into developed Western markets and now seeks to expand into Eastern lands. Decisions related to strategic positioning and international marketing make the core of the managerial dilemmas that the firm has to face.