Download What Business Can Learn From K-pop PDF

TitleWhat Business Can Learn From K-pop
TagsEntertainment (General) International Politics Music Industry South Korea
File Size187.3 KB
Total Pages5
Document Text Contents
Page 3

III. Strategic Value of K-pop

The K-pop Korean Wave Index shows that Korean pop music has peaked in popularity some 10 years after

the first steps to take the genre abroad. Compared to the early peak in 2004 when the index reached 100, in

2011 the index rose to 262, marking a 2.6-fold increase in seven years.

K-pop is a strategic asset for Korea. It not only creates economic added value but also has the spillover effect

of raising recognition of Korea and Korean products. It is estimated that the economic effect reached 4.98

trillion won in 2010. This indicates a need to carefully analyze the factors behind the success of K -pop, identify

the implications for business, and explore ways to apply them to various businesses. Valuable lessons can be

learned from K-pop, which has moved from the fringes of the world pop music market to succeed globally

despite language and cultural barriers.

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IV. Success Factors Behind K-pop

The cultural diamond model used in sociology was employed to analyze the factors behind the success of K-

pop. The diamond’s four corners carry major determinants to the success:

1) Creators: Entertainment companies developed systemized training and carefully laid plans to advance into

overseas markets; 2) Distribution: The time and cost for entering overseas markets is shortened with the use of

social media such as YouTube, Facebook and Twitter, through which contents are spread spontaneously; 3)

Consumers: The rapid spread of the popularity of K-pop can be attributed to fans who are typically tech-savvy

and eager to share information and opinions; and 4) Contents: K-pop stars display highly polished levels of

singing and dance and attractive looks. They attract fans and maintain their popularity by constantly trying to

release new songs and refining their style.

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