THE K-POP LENS: ANALYSING K-POP FROM A BUSINESS PERSPECTIVE

Abstract

Kpop is currently the 6th largest music industry across the globe and has been growing continuously for the past 10 years. They have also started investing in opportunities to increase their international presence as well. Yet despite the huge potential of the industry, little research had been done to understand the kpop industry and its business model. This paper aims to analyze the reasons behind the exponential growth and the factors that led to the rise of the Korean music industry in such a short time from a business perspective. This paper will focus on understanding the different business strategies that entertainment companies have adopted including goals and vision, how they hire their creative and managerial talent used by the Kpop entertainment companies that have accomplished the global takeover by Kpop over the music industry. Research has been done to understand the egocentric strategies that have helped the industry along with consumer oriented strategies as well. Papers have also analyzed the cultural aspects and factors that have led to the growth of kpop. But not a lot of research has been done to better understand the kpop industry from a management perspective. For this reason, I have chosen to take up this study. To attain these objectives, I have chosen to use Porter’s diamond model and a dynamic version for the music industry to better understand the same. These models will help shed light on the business model, the working and strategies adopted by the companies within the industry. The study also analyzes the supporting industries that have benefited from the growth of the kpop industry. The analysis showed that the industry has not only benefited highly from consumer oriented strategies and its highly popular fandom culture but also globalization and internationalization strategies that have aided in the growth of the industry. It also shed light on how the internet and digitization have helped the growth of the industry.