Knowing When to Merge: A Small IT Business in Korea Considers Its Options

Chan-Soo Park ()
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Chan-Soo Park: Faculty of Business Administration, University of Regina, Regina, Saskatchewan S4S 0A2, Canada

Asian Case Research Journal (ACRJ), 2009, vol. 13, issue 02, 299-318

Abstract: This case study focuses on how a Korean software firm, CCMedia, executed a successful global strategy by merging with its technology partner to gain access to international markets. The case study also reviews the key challenges CCMedia faced after the merger. Intangible assets, such as IT technology, could allow CCMedia to earn overseas capital investment through the merger. With capital and human resources backup from IT Inspire Inc., its former technology partner, CCMedia could enter foreign markets. This case examines the transformation of a strategic technology alliance to a hierarchical structure as a result of a merger. It shows that technology-related alliances could play an important role in possible takeover activities. It provides insights into strategies that technology-based small businesses in Korea could follow to enter international markets.

Keywords: Merger; information technology; Korea (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1142/S0218927509001273

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