Internet Market Entry Into South Korea
Introduction
The basis of this report was to identify a suitable target market that would be best suited to launch Jet.net. On considering many potential candidates, South Korea has been identified as the country to export this service to. The main body will include an analysis of how suitable Jet.net is for the selected market by exploring its existing broadband market and information required for market entry.
Market Analysis
The broadband market in South Korea has significantly grown in the last six years, to the extent that South Korea has become the worlds leading nation for broadband internet use. As table 1 shows in 2004 the worth of the broadband industry totalled $7.8 billion with a continued steady growth throughout the period 2000-2004. This represented a compound annual growth rate (CAGR) of 46.8% for the five year period (Data Monitor 2005).
Source: Data Monitor, June 2005 (TABLE 1)
The narrowband sector was the market‘s most abundant source of volume in
2004, with 19.5 million of the market’s overall user’s coming from this segment, which is equivalent to 61.5% of the total (Datamonitor 2005). But growth in this sector will be tiny as South Korea’s popular broadband sector gradually takes over the market.
Source: Korea Internet Whitepaper, 2006 (FIGURE 1)
AS the chart above shows in the last quarter of 2005 the internet usage rate has reached over 70% of the 48 million population with the number of internet users growing by 13.6% in 2000-20004, and expected growth still forecasted. This saw the market grow at a rate of 46.8%.
Target Market
In order to get a better understanding of the broadband market in South Korea, there needs to be an understanding of the potential consumers. South Korea’s hunger for technology has incorporated customers with a wide range of demographics in taking up broadband subscriptions. The usage rates of males tends to be
The basis of this report was to identify a suitable target market that would be best suited to launch Jet.net. On considering many potential candidates, South Korea has been identified as the country to export this service to. The main body will include an analysis of how suitable Jet.net is for the selected market by exploring its existing broadband market and information required for market entry.
Market Analysis
The broadband market in South Korea has significantly grown in the last six years, to the extent that South Korea has become the worlds leading nation for broadband internet use. As table 1 shows in 2004 the worth of the broadband industry totalled $7.8 billion with a continued steady growth throughout the period 2000-2004. This represented a compound annual growth rate (CAGR) of 46.8% for the five year period (Data Monitor 2005).
Source: Data Monitor, June 2005 (TABLE 1)
The narrowband sector was the market‘s most abundant source of volume in
2004, with 19.5 million of the market’s overall user’s coming from this segment, which is equivalent to 61.5% of the total (Datamonitor 2005). But growth in this sector will be tiny as South Korea’s popular broadband sector gradually takes over the market.
Source: Korea Internet Whitepaper, 2006 (FIGURE 1)
AS the chart above shows in the last quarter of 2005 the internet usage rate has reached over 70% of the 48 million population with the number of internet users growing by 13.6% in 2000-20004, and expected growth still forecasted. This saw the market grow at a rate of 46.8%.
Target Market
In order to get a better understanding of the broadband market in South Korea, there needs to be an understanding of the potential consumers. South Korea’s hunger for technology has incorporated customers with a wide range of demographics in taking up broadband subscriptions. The usage rates of males tends to be
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