Karaoke Analysis

What needs and wants are fulfilled by karaoke singing? Can these needs and wants be satisfied with other products, services, or activities?

Through karaoke singing customers satisfy their needs on entertainment. Singing along the lyrics either in a karaoke box or in karaoke-pub-style venue, they enjoy singing to entertain with updated songs individually or in group. For the businessmen in purpose of entertaining customers may go to karaoke box to make delightful air. The wants satisfied by karaoke is hardly replaced by other options, but we know how to handle the needs to have fun such as working out at a cool bar or predict any social activities like playing poker game or screen golf with their companies.

2. What trends in the environmental forces (social, economic, technological, competitive, and regulatory) identified in Figure 1-1 work for and work against the karaoke business in your country?

Social forces such as decrease in young ages work against the karaoke business as they are main target market of that business. Economic regression of economic forces work against the karaoke business as the entertaining market, not always but, gets easily affected by economic decrease so that low income customers save their budget in that portion. Change in technology from technological forces work for the karaoke business, for the fast updated songs- we even sing the song which is released the day in the morning. Otherwise, karaoke singing mobile application prevents individuals to seek "karaoke alone," as we're living in the "smartphone era," in which one fourth of the population of Korea posses one smart device. In addition, diverse alternatives in entertaining market approve that competitive force works against the karaoke business. Furthermore, by looking into the components of competition, low entry barrier, high bargaining power of buyers with low switching cost and high bargaining power of suppliers with few karaoke system suppliers, high existing rivalries, and high substitution possibilities support the reason that competitive forces work against the karaoke business. Regulatory forces work for the business as it is under free and fair competition.

3. What are the different segments of customers you can identify for the karaoke business? How are the requirements and expectations of the different groups different? What kinds of karaoke activities and facilities best satisfy the different segment?

Three segments of customers are defined as 1...