PROPOSE DIGITAL BANKING BUSINESS STRATEGY, LEARNING FROM BIG HIT ENTERTAINMENT TO CREATE CUSTOMER (ARMY) ENGAGEMENT WITH ITS PRODUCT (BTS)

• Main Author: Citra Aulia, Aldila
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53343
• Institution: Institut Teknologi Bandung

Around the 2000s, the second generation of K-pop was introduced overseas. In this era, the Korean wave - known as Korean Hallyu, began to infect several countries in Asia. Not only K-pop, but South Korea started to be known for its K-drama, Korean cosmetics, and their famous 10-step Korean skincare. 2017 was the height of the Korean Hallyu epidemic, marked by third-generation K-Pop groups' success entering the US and UK music markets. The main characters of this third-generation are BTS (Bangtan Sonyeondan), a boy group under the management of Big Hit Entertainment (Big Hit), and Blackpink, a girl group under the management of YG Entertainment (YG). The South Korean economy in 2019 was the 4th largest in Asia and the 12th largest in the world. South Korea's GDP was USD1.63 trillion in 2019; 0.3% was contributed by BTS (USD4.65 billion). BTS attracts one out of every 13 foreign tourists visiting South Korea. South Korea recorded 15 million international tourist visits in 2018, with nearly 1 million visiting South Korea because of BTS. BTS is one of the prominent figures which increased South Korea's global music sales to USD19 billion in 2018. The Hyundai Research Institute stated that BTS's contribution to the South Korean economy is equivalent to that of 26 medium-sized companies. This research intends to show a sound business strategy, supported by leaders who value people as the company's greatest asset; able to bring a company that started its business in a basement shop into one company that was able to contribute 0.3% of the country's total GDP in just five years. This research can be one of the considerations for the Indonesian digital banking industry in designing, implementing, and managing business strategies to create customer engagement with digital banking products. What is Big Hit's strategy to make BTS into a world legendary global artist with only one member who can speak English? Moreover, how can Big Hit's business strategy be applied to the Indonesian digital banking industry? This research uses qualitative research methodology by conducting literature survey and interview with Indonesian ARMY representative to explore a depth understanding of the research questions, business strategies, and business issues to be solved. The required data were collected from both primary and secondary sources to support this research. It can be concluded that building a global strategy is also about determining how to change or adapt a firm's core (domestic) business model to gain a competitive advantage as a company globalizes its operations. To build a global competitive advantage, Big Hit Entertainment adapts, combines, and arbitrages to global markets by prioritizing the company's value proposition, embracing market participation, developing value chain infrastructure, and adapting its management model. All strategies are applicable enough to be implemented in a digital banking business strategy.