Essay about Yg Swot

847 Words Sep 23rd, 2015 4 Pages
SWOT Analysis of YG
Strength
Unique brand image, leading the creation of new trends
The company’s potential for growth is huge in light of its superior creativity. For example, the company boasts the largest share of the domestic digital music market due to its creative music development.
YG Entertainment sticks to the HIP-HOP style and leads the hip-hop fashion in this industry. YG catches the HIP-HOP heat point and distinct itself from the other regular K-pop entertainment company with digital dancing music, which is the mainstream in Korean music market. YG is known for performing unique Korean Pop/Hip Hop music, mixing the genres. Given YG’s unique music style and fashion taste, it has accumulated a group of loyal fans.
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For instance, in 2011, YG reported revenues of W78.1bn and an operating profit of W17.8bn on an OP margin of 23.1%. The company’s high OP margin, despite relatively small revenues, suggests effective cost control under conservative management.
According to the official data, for the first half of 2013, YG posted revenue of 60,394,746,793KRW (approximately $54,036,032.31 USD). Comparing this to the first half of 2012, when YG accumulated approximately 40.6 billion KRW (approximately $36,325,392.99 USD), YG showed a gain of 20 billion KRW (approximately $17,894,282.26 USD), breaking a record-high in its revenue.
Weakness
High dependency on two artists.
Before 2NE1, YG was highly dependent on one artist, Big Bang. In the year 2010, Big Bang was responsible for 70.1% of YG entertainment’s total sales. This could mean that YG is more focused on Big Bang than any of its other artists, but this also means that if a problem were to occur with Big Bang, the whole company would be at risk.
Relatively limited music style.
Opportunity
The music industry is still growing and evolving
The success of entertainment companies hinges on their ability to produce competitive content. The entertainment industry boasts stronger operating leverage than any other industry, which should enable the sector’s companies to see their margins soar once revenue begins to outstrip fixed costs. Lately, Korean music companies are showing revenue growth on

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