Lotte: A case study on market entries through acquisition

Abstract

The Lotte Group operates in 19 foreign countries and entered also the European market with acquisitions. The company owns a strong market position in South Korea and is also known as the "leading retailing company in South Korea" with a 10% value share in South Korean retailing in 2012. Furthermore, the company owns a fast food chain with the biggest value share, and even outperforms Hyatt Hotels Corp., Wyndham Worldwide Corp. (Ramada), and Starwood Hotels and Resorts Worldwide (Sheraton) with its hotel chain Hotel Lotte Co., Ltd., and thus is the leading company in South Korea's travel and tourism industry. Lotte Group's unrelated diversification, mainly through acquisition, drives the basis of past, present and prospective success and is enforced through triple-helix support. If the conglomerate continues its expansion in Europe, branded divisions would only be found within hospitality or, less probably, in retail. The conglomerate grew through acquisition and it is most unlikely that it will attempt to convey its brand success to Western countries. Win-win growth through acquisition is more to be expected in Europe.