Evaluating the benefits, costs, and risks of international market entry: A case study of Lyft

This case study examines whether Lyft should enter the South Korean ride-hailing market and, if so, on what strategic terms. The analysis combines a PESTEL assessment of South Korea’s macro environment with a comparison of three entry modes (licensing, joint venture, and wholly owned subsidiary), an evaluation of cultural distance using Hofstede’s framework, and a review of exchange rate risk under Korea’s managed-float regime. The case highlights the opportunities created by South Korea’s advanced digital infrastructure, dense urban markets, and strong consumer adoption of smartphones, alongside risks related to political contestation, regulatory uncertainty, demographic change, and currency volatility. It is designed for courses in international business, strategic management, and international finance, where students can apply multiple analytical lenses to a single decision context and debate alternative strategic paths for a global platform firm.