In this regard, South Korea is considered a favorable destination for foreign direct investment.
For effective entry into the South Korea business, Snap Fitness requires a strategy for entry into the country’s market. There have been previous reports of companies that failed in such attempts but Snap fitness will not. The strategy for entry will involve all stakeholders in the Snap fitness business. The entry into the business will have to involve the locals. It is only when the locals are involved that they will feel free to adopt technology that Snap Fitness is introducing. The method that the company is going to use is that of partnership. For the company to secure a place in the Korean market, it will be appropriate that Snap Fitness seeks partnership with other fitness companies in the country. Therefore, Snap Fitness will identify the company to partner with before the entry.
Entry into a new market is always coupled with challenges and risks. Snap Fitness entry into South Korea is no different. The company expects to find already established market for many of its competitors and an uncertain population. There are also risks of partnering with a non-performing company that can ruin the whole plan or make it significantly expensive. However, this remains the most appropriate mode of entry given that the country is a multicultural state and for Snap Fitness to gain a competition base with rival brands. The other benefits of partnership are that we will be able to connect easily with the local consumers who are the target segment through using of the market language.
The above method has been documented to have worked with other brands such as MacDonald’s, which established itself into the Korean market by using culture as an asset and not a risk (Lim, 2004). They first used educated locals to learn the cultural requirements of Koreans, and then established products that are culturally acceptable.