DAEWOO

Daewoo was one of the major chaebol in South Korea. It is important to understand what is a chaebol? It is a business model that emerged specifically in South Korea and consists of large clusters in different economic sectors. And companies that exhibit this business model is because they have strong growth, technological development, diversification and a strong entrepreneurial dimension.

That is why Daewoo besides being known worldwide for its extensive efforts in the automotive industry and have been classified as the sixth largest manufacturer of automobiles in the world, also became known for the construction of defense products, helicopters, civilian aircraft without leaving aside the shipbuilding industry will soon earned a reputation for producing ships at competitive prices.

However in the late 90s due to the Asian financial crisis coupled with poor management of the company made Daewoo went bankrupt, undoubtedly one of the largest corporate failures in history. 

The factors or reasons that led to the collapse of the company is partly due to government intervention, another factor was the labor market as workers began to demand shorter working hours (because years ago the days were long and low remuneration), the operate in a global economy, since they have protectionists laws and asked to include free trade, another point to consider is the quality of the product in Korea and that many products were considered low quality.

In 2005, General Motors announced that Daewoo in Europe change its name to Chevrolet, but in late 2013, the company informed through the media that Chevrolet will leave Europe in late 2015. And unfortunately caused the economic slowdown in 2007 caused a decline in European demand, Chevrolet responded by lowering their prices and introducing more luxurious models that led him to face very prestigious brands.

The strategy adopted by Chevrolet was theoretically correct but in practice the result was the opposite as we again had to be facing another crisis but this time within the European Union.