Analyzing the competitiveness of K-pop and J-pop's business strategy by applying the ABCD model

Abstract

This paper analyzes the competitiveness of K-pop and J-pops business strategy based on the analysis by the comprehensive methodology, the ABCD model. K-pop, which sweeps the world nowadays, has been developed since the late 1990s by emulating J-pops production system and music styles. In the meantime, J-pop, which was an emulation target of K-pop and 2nd largest music market in the world, has lost the glory in the past and is even penetrated the domestic market by K-pop. In a respect that J-pop holds better-off factor endowments such as larger music market, longer pop history, wider variety of musical genres compared by K-pop, the success of K-pop and failure of J-pop in global music markets have no basis in factor endowments but business strategies. Thus, the paper examines and compares business strategies of K-pop and J-pop in comprehensive aspects of Moons (2016) ABCD model, which is composed of Agility, Benchmarking, Convergence and Dedication. Based on the analysis, it demonstrates that how K-pop penetrated the global markets by utilizing comprehensive business mixes while J-pop was not attuned to the changing music industry by adhering to existing strategies. And by extension, it proves the previous concerns regarding K-pop as a passing fad are wrong, given that K-pop is a composite art, which cannot be simply imitated by other competitors.