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Samsung and Goldstar have recently made equally impressive inroads in the market for videocassette recorders. Five years ago, the Korean companies turned to Japanese manufacturers to provide the necessary technology to make VCRs. In return, the Koreans delayed their entry into the U.S. market until 1985. Their belated arrival in American shopping malls ten months ago has sparked a classic price war. The price of a no-frills VCR has fallen from about $350 to $200. Though Japanese manufacturers have slashed prices to meet the competition, Korean companies may have already won 5% of the American VCR market.
Daewoo's IBM-compatible personal computer, known as Leading Edge Model D, has been selling well since it was introduced last year. At $1,495, it costs about 45% less than an IBM PC. Says David McDonough, co-owner of five Computerland outlets in San Diego: "It doesn't bother the customers where the computer comes from. It's price and performance that counts."
No business arena is more alluring to Korean manufacturers than the U.S. auto showroom. Americans bought some 11 million cars last year for $131 billion. Hyundai, whose Pony subcompact is already the best-selling import in Canada, may be able to capitalize indirectly on the lofty reputation of products made in Japan. Says Edward Klein, a Canadian auto dealer who sells the Pony: "People perceive it as a quality car because it comes from the Orient." That perception has some foundation: Japan's Mitsubishi owns 15% of Hyundai and supplies the technology for the Excel's engine and transmission.
+ The Excel is certain to intensify competition among makers of small cars. The rivals include Ford's Escort (base price: $6,052), Chrysler's Omni and Horizon ($6,209), the Toyota Tercel ($5,598), the Nissan Sentra ($5,649) and the Honda Civic ($5,649). Admits one Detroit executive: "The Excel will be a formidable competitor for everybody in the low end of the market."
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