Intellectual Property Acquisition Strategy of a Startup: Golfzon Case in Korea

Despite the importance of intellectual property for a startup, exemplary evidence is lacking in reports on the use of proprietary assets, i.e. intellectual property, by firms to dominate the market. To fill this research gap, the current paper aims to show the process of formulating a very active strategy for intellectual property protection applicable in both domestic and global settings by examining a firm that introduced a totally new concept to the market. The case selected was Golfzon, which was founded in 2000 in Korea. Golfzon inaugurated a new business model, which is through offering a virtual golf game that is as enjoyable as real golf. In showing the market development process and Golfzon’s strategy, the growth of this firm is divided into three periods, namely, start-up period, rapid growth period, and diversification period. The results show that Golfzon actively made use of the intellectual property system to maximize their appropriable knowledge, starting from the rapid growth period. With this approach, the company outperformed its competitors in the Korean market, thereby becoming a dominant design in the industry. Presently, Golfzon is in the diversification period, which might be worth further elaborating in ensuing research if Golfzon exhibits a fine example for scholastic argumentation.