Analyzing the Competitiveness of Entertainment Management Companies of Korea and Japan

Abstract

The entertainment industry of Korea has grown rapidly and is believed to have abundant potential. Major entertainment management companies (hereafter EMCs) such as SM Entertainment and YG Entertainment have enjoyed tremendous success domestically and globally. There were numerous factors in the success of the EMCs. By developing comprehensive business systems that combined major value chain activities such as production, distribution, wholesale, licensing, management, agency and internet mobile contents business, EMCs were able to create new values and minimize risks. Furthermore, by combining the different elements of success, the EMCs were able to create a unique point of competitiveness of their own. The following thesis shows that all of these success factors of the EMCs can be categorized into two main strategic points, benchmarking and convergence. The business systems of several Korean and Japanese EMCs will be reviewed to analyze the competitiveness of the Korean EMCs stemming from these two strategic points. This research also looks to derive the future implications of the Korean EMCs.