The Emergence of a new Chaebol: Corporate strategy and leadership in successful M&A of STX in Korea-a case study

Abstract

South Korea has experienced an extraordinary reconstruction for decades. This remarkable turnaround derived by Chaebols gave people two biases. Firstly Korean big conglomerates were made by State. Secondly, it will not appear a new Chaebol since existing big businesses already occupied almost whole market share. STX, however, tears down the stereotypes since its firm was new born and a medium sized business in an early stage. This paper, therefore, examines the successful M&A of STX which have used acquisitions as a main driver of its overall growth strategies, converting its firm achieve one of the world’s best performing acquisitive corporations. So this study shows an active M&A strategy for corporate growth is presented, along with a case study of STX. Besides, this study reviewed literatures to identify and discuss between the related studies and findings. Also this article has provided recommendations on what rivals should do to increase their chances of success through lessons from the STX’s case study.

South Korea has experienced an extraordinary reconstruction for decades. This remarkable turnaround derived by Chaebols gave people two biases. Firstly Korean big conglomerates were made by State. Secondly, it will not appear a new Chaebol since existing big businesses already occupied almost whole market share. STX, however, tears down the stereotypes since its firm was new born and a medium sized business in an early stage. This paper, therefore, examines the successful M&A of STX which have used acquisitions as a main driver of its overall growth strategies, converting its firm achieve one of the world’s best performing acquisitive corporations. So this study shows an active M&A strategy for corporate growth is presented, along with a case study of STX. Besides, this study reviewed literatures to identify and discuss between the related studies and findings. Also this article has provided recommendations on what rivals should do to increase their chances of success through lessons from the STX’s case study.