A Study on corporate strategy of successful venture company in Korea

Abstract

This thesis explores the factors that lie behind the sustained success of venture companies. The success of venture companies is crucial to the national economy as well as the entrepreneurs. Most Korean venture compames were established in recent years and are engaged in advanced technology industries such as information and communication, multimedia and software. They spend over 10 percent of sales on R&D and have shown a remarkable growth performance. Some of the common characteristics of successful Korean venture companies are that they are founded by highly educated entrepreneurs, they emphasize innovative differentiation strategies, and they possess superior technologies and financing capabilities. In the case of Medison, the company's diversification strategy has contributed to its continuous growth and success. The company's business domain now includes not only medical equipment but also biotech, medical internet and business infra service. Diversification is, of course, not the only solution to the continuous growth of all venture companies, but a worthwhile strategy for entrepreneurs who do not want to maintain the status quo. However, financial feasibility should be carefully taken into consideration in pursuing a successful diversification strategy.