Snap Fitness's Prospects for Business in South Korea - International Business Management Country Study – Term Paper Example
International Business Management Country Study International Business Management Country Study Snap fitness is a 24 hour, 7 days Access Fitness Centre which provides fitness to its customers. This type of business is a resource to most people, especially in a society where more people are tied in offices throughout the day, hardly having time for physical activity. South Korea, as it has come out in the following analysis, is a service sector economy, with over 70% of the workforce in the services sector. Most people in the services sector are tied to their offices and having a place they can go and have some fitness activities can be a big opportunity for them. As such, Snap fitness will provide these services to these people so that they can access these services as and when they want.
South Korea is among the fastest advancing economies globally with a population of about 49 million people. According to the Central Intelligence Agency (2011), South Korea had an economy similar to those in most African countries. However, the country has grown its economy to a high technology economy and has joined some of the biggest economies in the world with a GDP of over one trillion dollars, making it number twelve in the ranking of world economies.
To manage to grow the economy in this regard, the government offered incentives to investors to import technology, at the expense of other consumer goods (Nee, 2012). Presently, South Korea is a chief exporter of technological goods such as electronics and some of the products from this country, such as Samsung are best known in the world. The GDP of South Korea stands at about 1.5 trillion US dollars in 2013 and the growth rate supersedes those of other Asian countries which are also growing very fast, such as Singapore and China. The real GDP growth rate has however shown a decreasing trend, standing at 2% as at 2012 and starting as high as 6% in 2010 (CIA Fact book) the countries GDP is a mainly made of three sectors which include Agriculture (2%), Industry (39.8%) and Services sector (57.%) percent. The countries main exports are technological products, being exported to the rest of the world, bust mostly to European counties and some African countries.
The labour force in South Korea stands at about 25 million people, with most of the labour force (70%) being in the services sector. The agriculture sector takes up 6.2% while the rest (23.8%) is taken by the industry sector.
With regard to infrastructure, South Korean has some of the best infrastructure. The excellence of transport infrastructure is evidenced by the fact that the nation has 71 airports serving a country with only 38,691 square miles. Of these, over 19 of them have an area of between 438 and 3,047; and four have an area of more than 3,047 square miles. The airports are supplemented by numerous (40) unpaved airports and heliports (466). These airports are also networked by a network of roadways and highways. Most of the roads (83,199 km) are paved which make about 80 percent of the 104,983 km or roadways as at 2009 (Central Intelligence Agency, 2011). South Korea has a pipe line of over 2,216 km for gas and 16 km for oil and another 889 km for refined products (Central Intelligence Agency, 2011).
Type of government
According to the CIA fact book, S. Korea has a functional democratic system, which has three branches like most democratic systems. These include the Judiciary, the Executive and the legislature. The South Korean government is very stable, with a standing powerful military to protect the nation from both internal and external threats. The existence of a fully functional democracy is also a guarantee of a stable government. However, there have been repeated military disputes between North Korean and South Korea over the border separating the two since 1953.
According to the CIA, the legal system in South Korea is a mixed one, featuring European common law, Anglo-American legal system, as well as Chinese legal models.
South Korea has quite a number of environmental laws which area geared towards protecting the environment in the various aspects, such as water, marine, air etc. These laws are however mostly applicable to manufacturing entities, and therefore a business such as snap fitness would not be affected by them. It also has a number of laws with regard to labour. However, these laws are common labour laws as can be seen on places like the USA and therefore do not pose a barrier of entering into business in South Korea.
Central Intelligence Agency. (2011). The CIA World Factbook 2012. New York City, NY: Skyhorse Publishing Inc.
Nee, P. (2012). Key Facts on South Korea. New York City, NY: Patrick Nee Publishers .