This study explores a case of a leading media entertainment company in Korea. Korean media entertainment firms have witnessed a dramatic growth for the last decade. However, they are faced with an overall profitability decrease due to the continuing fierce competition coupled with a domestic market saturation. In this light, we analyze a success case of vertical integration strategy of CJ Entertainment, Korea’s number one film distribution company. First, we investigate the specific natures of a film industry that sets this case apart from others. Then, we navigate a ten-year history of CJ Entertainment since its establishment, during the time which the company had successfully implemented strategies and achieved its number one market position. Finally, a number of strategic issues are discussed in terms of the changed environment and the company’s sustainable growth.