SuperM as a Strategic Entry Mode into the U.S. Market

Entry Mode and Its Relevance in K-Pop Globalization

In international business, an entry mode refers to the strategy that a firm adopts to enter a foreign market. Common types include exporting, franchising, joint ventures, wholly owned subsidiaries, and strategic alliances. In the cultural and entertainment industries—especially K-pop—firms often employ hybrid forms such as global joint ventures, licensing, and direct investment in promotional and touring infrastructure. SM Entertainment’s launch of SuperM represents a strategic and innovative form of direct investment + strategic alliance, specifically tailored to penetrate the highly competitive U.S. music market.

SuperM as a Customized Market Entry Vehicle

Rather than promoting an existing K-pop group, SM Entertainment created SuperM from the ground up for the American market. This approach is distinct from simple exporting (e.g., selling albums abroad) or licensing (e.g., allowing other companies to use their music). By forming a multinational “supergroup,” SM pursued an active market creation strategy. Partnering with Capitol Music Group (a U.S.-based label) allowed SM to leverage local distribution channels, promotional expertise, and brand credibility—core elements of a strategic alliance entry mode. This minimized risks while accelerating market acceptance.

Localization Through Talent and Branding

Entry strategies often succeed when firms localize their offerings. Although SuperM did not include American members, the selection of English-speaking idols (e.g., Mark and Ten) and the exclusive use of English in debut content signaled an intentional adaptation to American market expectations. This hybrid localization strategy helped SM Entertainment bypass cultural entry barriers, aligning with the glocalization model frequently discussed in global marketing literature.

Direct Market Presence and Fan Engagement

SM’s decision to host concerts in major U.S. cities and open pop-up stores on Hollywood Boulevard demonstrates another aspect of their entry mode: direct investment in marketing and physical infrastructure. Instead of relying solely on digital channels, SM invested in on-the-ground brand experiences, reflecting a long-term commitment to the U.S. market. This goes beyond mere content export and more closely aligns with the concept of a wholly owned subsidiary in a non-traditional industry setting.

Limitations and Evolving Entry Dynamics

Despite a successful debut, SuperM’s long-term viability was impacted by internal challenges such as military service and member departures. These issues illustrate the fragility of non-equity-based entry modes in talent-driven industries. Nonetheless, the experiment validated the idea that K-pop firms can—and perhaps must—create specialized market entry vehicles when targeting mature foreign markets like the U.S.

📚 References

GMA News Online. (2023, January 3). SuperM to make a comeback in 2023. GMA Network. https://www.gmanetwork.com/news/lifestyle/hobbiesandactivities/856144/superm-to-make-a-comeback-in-2023/story/

Lee, S.-m. (2019). Why is SuperM called the Avengers of K-pop? SM Entertainment Newsroom. https://www.smentertainment.com/newsroom/superm%EC%9D%80-%EC%99%9C-k%ED%8C%9D-%EC%96%B4%EB%B2%A4%EC%A0%B8%EC%8A%A4%EB%A1%9C-%EB%B6%88%EB%A6%AC%EB%8A%94%EA%B0%80/

NME. (2024, October 4). SuperM, five years on: What happened to the Avengers of K-pop? NME. https://www.nme.com/features/music-features/superm-five-years-on-what-happened-to-the-avengers-of-k-pop-3799575

Reddit contributors. (2023, May 10). After all, what happened to SuperM’s comeback? Reddit / r/kpopthoughts. https://www.reddit.com/r/kpopthoughts/comments/137t52w/after_all_what_happened_to_superms_comeback/

SM Brand Marketing. (2019). SuperM Pop-up Store. SM Brand Marketing Portfolio. https://smbrandmarketing.com/en/portfolio/index.php?cat_no=2&idx=68&mode=view&offset=12

Wikipedia contributors. (n.d.). SuperM. Wikipedia. Retrieved March 28, 2025, from https://en.wikipedia.org/wiki/SuperM

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