Doosan Infracore International:

Portable Power Brand

Transformation (A)

Doosan Corporation
Type
Founded

Joint-stock company
December 18, 1933

Founder
Headquarters
Key people

Park Seung-jik
Seoul,South Korea
Yongmaan Park
(Chairman)
995 billion (2014
186billion (2014)
1,890
Doosan Heavy Industries &
Construction
Doosan Infracore
Doosan Engineering & Construction
Doosan Engine
Doosan DST
Doosan Rexcon
Doosan Capital
Oricom
Neoplux
Doosan Cuvex
Doosan Bears
Doosan Feed & Livestock
Doosan Tower Corp

Revenue
Net income
Number of employees
Subsidiaries

Case Summary
Doosan Corporation was establishes in 19th century and concentrated on car
dealership, restaurant franchises, brewing and other consumer business lines up
to first half of the 20th century.
In the 1970s, Doosan began shifting its focus to business to business market.
The company grew its B2B footprint with infrastructure products and services such
as diesel engines, construction equipment, desalinization plants and nuclear
power system.
In may 2007, Ingersoll Rand (IR) announced its intention to sell its compact
equipment business.
By July, Doosan had reached an agreement to purchase the business at $4.9
billion.

 IR portable power equipment products lines had uniform and widely

recognized characteristics.
The products were high quality, supporting relative high prices.
IR products were sell at 5% to 10% premium price and many of Doosans
leading products sold at 10% to 20% discount at that time.
In December 2007, the global economy had become mired in a deep
recession.
The economic downturn was especially impactful for rental, construction
and oil & gas industries on which the portable power division depends.

Forces behind acquisition

Global & competitive market penetration
To be a full liner
To be king in three business units

1. utility equipment for current less areas

(Portable power A profitable Niche)
2.compact equipment vehicle
3.vehicles with various brand names

Attachment lines
To build reputation in air compressors
IRs high profile in revenue, growth & profitability
World class technology & brand names.

Rebranding of acquisition
Doosan corporate identity
Doosan visual system
Doosan way
Shift in ownership & shift in philosophy
Half century tradition of growth through transitions
To be a global ISB

History - Successful quick & decisive transitions

e.g.: Doosan & Daewoo transition (hydraulic excavators)

Doosans effort ...Doosans credit...not for others.
e.g. Airend compressors

Brand transformation pros &

corns
Keep the brand - merits

Keep the brand - demerits

Brand name
Opens wide market
Customer trust
No additional costs

Subsidiary model
Separate promotions
Not a leader

Brand transformation pros &

corns
Co branding - merits

Avoid initial entry barriers

Time to build up brand
Time to get trust about new parent

company

Co branding - demerits

Free promotion for others

Delay to be global

Brand transformation pros &

corns

Post five year transition merits

Post five year transition demerits

Strategies of first company will

Get fully settled and equipped

make influences
Long period as many technical and
financial changes may happen.

Brand transformation pros &

corns
Immediate transition - merits

Immediate transition demerits

Technical faults may lead to utter

If base is strong removal of the

existing player and becoming the

king.

lose to the new brand

Customers may not prefer the new
suddenly since it is a big investment

B2B -----2-----B2C whether a right decision? If it had not

withdrawn could it become an another Wal-Mart.?

Distributor & customer
Roll of product durability, reliability, features, functionality,
and ease of use, service quality, price and maintenance in
case of End user?
Acquisition (IR) without intellectual property (AIREND) and
design engineers.
How should DOOSAN justify keeping IR brands but using its
own intelligence for developing them?