This study analyzed the success of Cretec, the leading company in the Korean tools distribution industry. Cretec has grown from a small retailer to the leader of the tools distribution industry. We described the growth process and analyzed the critical success factors of the firm. Analysis of secondary data and interviews revealed that Cretec's superior strategic position in the industry comes from product leadership and customer intimacy. This case study delineated three critical factors in explaining Cretec's phenomenal growth and success. First, Cretec has persistently pursued exploration and innovation. Cretec has always been a pioneer in the industry through diverse experimentation and exploration, which enabled the company to set up the industry standards, such as a comprehensive industry catalog, bar code system, and a variety of IT systems. Second, CEO's leadership and his ‘emotional communication’ approach has played a critical role in evoking employee enthusiasm and commitment to the company's success. Lastly, Cretec has made constant investment in people-their most important asset, and created a unique HRM policy which puts great stress on emotional attachment among its employees.