STX그룹의 성공과 실패의 전략적 분석

Abstract

STX group, which had started in 2001, became the 13th largest business group in Korea within a decade. STX group had declined since 2008 global financial crises and was dismantled in 2014. Chairman Kang started as salaryman and became Owner-manager of the 13th largest business group. He left much lessons and implications for Korean business. Now is the COVID-19 crisis. It is important to understand the reasons and background of the rise and fall of the new rising star in 2000’s. STX group initiated the cost advantage strategy in Dalain, China while STX tried to pursuit the high value-added strategy in Eurpoe. It was difficult for STX with limited resources and capability to chase two rabbits. STX group should not have started STX Dallian. STX group may have been successful if it consistently pursued the high value-added strategy. STX group utilized the advance payment from clients for M&A investment. This is a risky financial operation. As the recovery of investment became slow, ship building companies of STX group increased the borrowing for operation. The unique financial style utilizing advance payment led to the liquidity crisis of STX group. The vertical diversification strategy by M&A is risky because the related companies may become bankrupt together during the recession. Chairman Kang focused on the growth and neglected the risk management. It is one of the reasons for STX group to have fallen.