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

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  • Amoa-Gyarteng, Karikari

Abstract

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.

Suggested Citation

  • Amoa-Gyarteng, Karikari, 2025. "Evaluating the benefits, costs, and risks of international market entry: A case study of Lyft," EconStor Preprints 333585, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:333585
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    File URL: https://www.econstor.eu/bitstream/10419/333585/1/Lyft%20South%20Korea%20Case%20Study.pdf
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    References listed on IDEAS

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    1. Karikari Amoa-Gyarteng, 2014. "International Tax Avoidance Schemes: An Investigation of Multinational Technology Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 365-370, January.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls

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