Competitive Advantage Analysis of Korean Film Industry

The purpose of this thesis is to find out where is the origin of the competitive advantages of Korean film industry from. This thesis tries to analyze the issue in more diversified points of view rather than only in government policy side. After analyzing a lot of Chinese, English, and Korean data, the thesis simulated the competitive advantage interacted system of Korean film industry and how the competitive advantage changed.

The article is based on Porter 's diamond model to analyze the demand conditions, factor conditions, firm strategy, structure and rivalry, related and supporting industries and government factor of Korean film industry in the history frame.

The analyses of these key factors are as followed.
1.Demand conditions
The market share was 39.7% in 1999; and in 2005 was almost 60%. In other countries, export amount of Korean films also increased.
2.Factor conditions
Korean film industry had abundant capital, human resource, and industry knowledge.
3.Firm strategy, structure and rivalry
Firms had clear objectives and strategies. Firms competed intensely in well environment.
4.Related and supporting industries
There was a strong linkage between film production, distribution, and exhibition. Moreover, film industry leverages the sources with other related industries.
5.Government
Funding the Korean Film Council (KOFIC), the screen quota system and the supporting policies were important events.

Korean film industry has developed self-strengthen system. Besides the support of government, all environment factors interacting was the most important reason of the success today.