Effects of Environmental Forces on Karaoke
Business
What trends in the environmental forces (social, economic, technological, competitive and regulatory) work for and work against the karaoke business in your country?
Social: Generation Y and younger generation is more expressive of their feelings and emotions compared to older generations, due to education and new ways of communication (Internet). This is especially true in Asian context as society is becoming more liberal. This would work for karaoke business as more people will seek a more expressive way for entertainment. Karaoke is more expressive than traditional entertainments like watching TV, movie or performance; it is likely to attract more people.
Economic: the fast growth of Singapore’s economy provide more discretionary income for people to spend on entertainment, hence work for karaoke business in term of more potential revenue. Also, the fast-pace and competition of economic life, reflected in longer working hours, heavier work load and more demanding work quality, makes people more stressful. Hence people may demand more means to relax and de-stress, which create an opportunity for karaoke business.
Technological: As mentioned in the text, technological advances constantly upgrade the karaoke system, from cassette tapes, CD, VCD, DVD to telephone network and now Internet connections, making storing and retrieving songs more easily. At the same time, improvements in sound system and light system make the KTV experience more vivid and exciting. All these work for karaoke business as they help to create a better entertaining, performing, listening and watching experience.
Competitive: entertainment business is fast expanding, many new forms of entertainments are created and old forms modified. This is likely to create more competition to attract customers which will work against karaoke business. For instance, Microsoft’s X-box and Kinect game system, which provide a cheap yet interactive way of entertainment at home, would lure more people to
Social: Generation Y and younger generation is more expressive of their feelings and emotions compared to older generations, due to education and new ways of communication (Internet). This is especially true in Asian context as society is becoming more liberal. This would work for karaoke business as more people will seek a more expressive way for entertainment. Karaoke is more expressive than traditional entertainments like watching TV, movie or performance; it is likely to attract more people.
Economic: the fast growth of Singapore’s economy provide more discretionary income for people to spend on entertainment, hence work for karaoke business in term of more potential revenue. Also, the fast-pace and competition of economic life, reflected in longer working hours, heavier work load and more demanding work quality, makes people more stressful. Hence people may demand more means to relax and de-stress, which create an opportunity for karaoke business.
Technological: As mentioned in the text, technological advances constantly upgrade the karaoke system, from cassette tapes, CD, VCD, DVD to telephone network and now Internet connections, making storing and retrieving songs more easily. At the same time, improvements in sound system and light system make the KTV experience more vivid and exciting. All these work for karaoke business as they help to create a better entertaining, performing, listening and watching experience.
Competitive: entertainment business is fast expanding, many new forms of entertainments are created and old forms modified. This is likely to create more competition to attract customers which will work against karaoke business. For instance, Microsoft’s X-box and Kinect game system, which provide a cheap yet interactive way of entertainment at home, would lure more people to