SM Entertainment Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

K-pop, a Korean idol group, showed its potential to become the market leader in its first tour to Paris, Europe in June 10, 2011. When the producer, SM Entertainment had to immediately set up an additional concert because in the first concert there was a massive blow of the fans that demanded to organize a flashmob rally in front of the Louvre Museum.

Soo-man Lee’s creation of a unique production system in SM Entertainment, derived k-pop toward this success. From the existence of the company in 1995, the company followed a systematic production system that proved to be helpful in alignment of record distribution, agency, and management and that played a vital role in the development of talented artists.

This case comprises of the systematic development process used by the SM to flourish the talent. SM has emerged as a market leader in the industry of Korean entertainment through the adoption of the sustainable growth model.

It also describes the challenges encountered by the SM entertainment on this track especially in the countries Korea, China, and Japan and shows the adherence of Lee towards his vision of “virtual nation” from the very first day.

This case evaluates the multiple strategies pursued by SM Entertainment to extend its boundaries across the world to attract the most talented pool. Lee primarily focused on the Chinese market, as according to his believe that the world’s biggest star would come from this large market. Thus, one of the objectives of Lee’s effort was to succeed in China.