BIG HIT ENTERTAINMENT AND BTS: K-POP REACHES FOR A

GLOBAL BREAKTHROUGH

A CASE ANALYSIS

Presented to

The Faculty of the College of Business and Management

Central Mindanao University

Submitted by:

Maris Angela

Quidet Shannen Alyssa Marie

Sanchez Lislie

Taganas Jeneuse Jade

Tampus Dec Veber

Bachelor of Science and Business Administration major in Marketing 3 rd

Year college
 1. Introduction

Other Korean pop music (K-pop) bands had tried to break through

into markets outside Asia, including the enormous U.S. market, without

success. But in the bound of 2018, managers at Big Hi Entertainment

(Big Hit) had the motivation to consider their super-hot boy band, BTS,

might just have a real possibility. Their technique to generate a fan base

was also beyond the norm rather than focusing on television (TV) shows

the organization used social media, making a base that included millions

of foreign fans. However, there are numerous things to consider like

could BTS truly escape the inherent limitations of the K-pop “system”?

BTS was distinct, but it was still K-pop. Could such a controlled system

for developing creative outcomes (even a different system) develop the

originality demanded a global breakthrough? On the other hand,

straining too hard to isolate themselves from their K-pop legacy also

carried threats; what would their most loyal fans think if BTS started to

“Westernize” in a manner that did not seem genuine?

Apart from that, there were many analysts of K-pop who

thought that success in the United States would still be

limited, partly due to cultural distinctions. For example, the

Korean beauty trends and aesthetics that had drawn the rest

of Asia were, according to Western criteria, perceived in the

West as being weird. Socially, Asians stayed a minority in

terms of their presentation among celebrities. They needed to

make selections that formed opportunities and carried the

possibility for bigger breakthroughs, without selling out their

perceived genuineness and losing their dedicated fans.

2. Company Background

Big Hit Entertainment is a South Korean entertainment

Company, and it was founded on February 1, 2005, and

signed the vocal trio 8Eight in 2007. In 2010, the company

signed a joint management contract with JYP Entertainment

over the boy group 2AM. That year, Bang Si-hyuk signed RM

as the first member of BTS and launched nationwide

auditions to recruit other members of the group—BTS made

their debut under Big Hit on June 13, 2013. In 2012, the

company signed Lim Jeong-hee, and formed the girl group

GLAM as a collaboration with Source Music. The group was

active until 2014 when it had been disbanded thanks to an

issue involving one its members Kim Da-hee—Kim was

sentenced to prison after being found guilty of blackmailing

actor Lee Byung-hun. Following the top of the joint contract

between Big Hit and JYP in April 2014, three members of

2AM returned to JYP, while Lee Chang-min remained with

Big Hit in order to continue together with his solo career and

as a part of the duo Homme. The year also saw the

disbandment of 8Eight after Baek Chan and Joo Hee's

contracts with Big Hit ended. In May 2015, Lim Jeong-hee

parted ways with the agency, following the expiration of her

three-year contract. In February 2018, Homme disbanded

after member Changmin's contract came to an end. He left

the company to start out his own agency, while Lee Hyun

continued as a solo artist. In October, BTS renewed and

extended their contract with the agency for seven more years.

Big Hit debuted its second male group, Tomorrow X Together

(TXT), in March 2019. In February 2021, Big Hit announced a

partnership with Universal Music Group, which would

include a joint venture between Big Hit America and Geffen

Records on an Los Angeles-based label and to develop a pop

group under a K-pop-influenced model, and UMG exploring

further use of BIG Hit's social platform Weverse. Because of

this partnership, Big Hit reached an agreement in October for

BTS to move its distribution within the U.S. and several other

countries from Sony Music's Columbia Records and therefore

the Orchard to Universal.

 Some problems that Big Hit and BTS might face when

they continue to reach a global breakthrough

1.Creating English-language album

●Language barriers.

●Very few foreign-language artists from any country had

managed to break into the US mainstream music market.

●Backlash from their existing international fan base.

2. Having North American tour

●Opportunity cost would be significant.

The loss of Asian-based sponsorships or other advertising

revenue opportunities.

3.The uncertainty that BTS would take in moving into

worldwide prominence and serious respectability.

III. Areas of Consideration

Strengths:

 Large customer base

 huge fandom that will support them

 Strong brand name identity

 Reaching global

 Many distinguished national and international awards

 Great visuals and talent

  Their music conveys positive messages

Weaknesses:

 Language barriers

 Health deterioration

 Difficulties in doing separate activities

Opportunities:

 Collaboration with other artists and brands across the

world

 Increasing entertainment demand

 Rise of Korean culture

Threats:

 Lack of privacy due to growing attention in the society

 Cultural differences

 Heavy pressure due to bustling schedule

 Potential competitors in the music industry

 Involvement in scandal and fake news

 Members of the group might pursue being a soloist

IV. Alternative Course of Action

1. Innovate and give an outstanding

performance/album without moving forward into western

countries.
Advantages: They will be more popular especially in their

own country, the fans will be more loyal and will appreciate

their effort towards making good music, also more

opportunities, like collaborations will come.

Disadvantages: It will create more rivals to other

entertainment/idols. It can also create fan wars.

2. Generate creative outcomes to remain their legacy as

K-pop idols.

Advantages: It will create a positive mindset for their fans to

not criticized them for wanting to westernize their songs.

Disadvantages: It will take a hard time to produce something

that can really get the fans loyalty.

3. Organize events for their fans

Advantages: It is the best way to strengthen and build their

relationship to their fans and can also build excitement for

the people.
Disadvantages: It will take time to organize everything since

they have fans all over the world.

4.Pursue the Global Breakthrough despite of its risk

Advantages: Overcoming the cultural differences like

adopting the changes in Western Countries may result in

growing the income of the company and learning a lot of

ideas like equipment for better visuality and choreography

that they may apply into their country

Disadvantages: fan base or local fans may disappoint but

through time they may slowly accept the changes and

continue to support the group.

V. Recommendation

Many artists in different countries are famous for their

unique talent in dancing and singing and many others that

will amaze many but somehow there is this cultural barrier

that may hinder their breakthrough it could be because their

fear of losing their uniqueness or losing their devoted fans in

their country if they choose to mix their culture with the

other country because of their different perceptions, But I

would suggest to the BTS group to be Innovate and give an

outstanding performance/album without moving forward into

western countries, creating a piece of outstanding music will

somewhat destroy the cultural differences because there are

no language barriers when it comes to music, we also listen

to songs of various languages that we don't understand.

Music is a medium that connects people. This will enhance

their popularity, especially in their own country, the fans will

be more loyal and will appreciate their effort towards making

good music, also more opportunities, and projects that would

generate an income