www.tjprc.org editor@tjprc.org CGV IN CHINA HYUNMIN LEE & SEUNGHO CHOI Department of Business Administration, Ewha Womans University, Seoul, South Korea, Asia ABSTRACT CJ CGV entered into the Chinese cinema market in 2006 by establishing a joint venture with Shanghai Film Group (SFG), which is a subsidiary of Shanghai Media & Entertainment Group.CGV entered into Chinese market with the strategy to make CGV the hub of Korean culture. However, CGV is struggling in the market is due to the loss of its original market, which is a main strategic issue of CGV in China. To solve this strategic issue, cinematization can be an effective way for CGV to acquire exclusive contents competitive in Chinese niche market. Also, CJ E&M should make close strategic alliance with Chinese firms to produce sufficient and adequate Korean contents. KEYWORDS: CGV, China, Acquisition, Film Industry Received: Mar 19, 2016; Accepted: Mar 28, 2016; Published: Apr 12, 2016; Paper Id.: IJBMRJUN20161 INTRODUCTION COMPANY OVERVIEW History Overview of CJ CGV From the foundation of the brand, CJ had been a part of Samsung until 1993. However, after Lee Byung- chul passed away in 1987, there was the first arrangement of Samsung’s subsidiaries among Lee’s family in 1993 and CJ became independent from Samsung after the arrangement. After its independence from Samsung, CJ has aggressively diversified its business into media, entertainment, finance and information & communication businesses. To expand its business into entertainment, CJ established subsidiaries such as Cheil Golden Village, the ancestor of CGV, with Orange Sky Golden Harvest of Hong Kong and Village Roadshow of Australia in 1996. Starting from CGV Kang-byun in 1998, CGV was the first company in Korea to introduce multiplex, a movie theater complex with multiple screens, typically more than one screen within a single complex. The company has become the no.1 in Korean cinema industry by providing differentiated services and locating its theaters in places with a large population. In addition to CGV, CJ E&M Corporation (CJ E&M) is another subsidiary of CJ’s Entertainment and Media department. In 2010, the media department of CJ O-Shopping was divided into O-Media holdings. In the same year, it went public to Kosdac. And in 2011, O-Media holdings changed its name into CJ E&M. In march 2011, it took over 5 media subsidiaries within CJ; On Media, CJ Media, CJ Internet, Mnet Media and CJ entertainment. After M&A, departments were reorganized into four parts; media, film, music and live entertainment. Under CJ E&M, there are four parts; media, film, music and live entertainment. Media part started from the music channel Mnet in 1993. Now it has 18 channels like tvN, Mnet, OCN and etc., and most of its programs have high view rate due to the creative contents that attract people. Film part deals with planning, production and distribution. CGV in China CJ CGV entered into the Chinese cinema market in 2006 by establishing a joint venture with Shanghai Original Article International Journal of Business Management & Research (IJBMR) ISSN(P): 2249-6920; ISSN(E): 2249-8036 Vol. 6, Issue 3, Jun 2016, 1-10 © TJPRC Pvt. Ltd.