Q. What was Samsung Electronics target, how did it change and what is a best way for it to change in the future with the changing external environment?
When Samsung Electronics started out by purchasing the first wafer production in Korea called the Korea Semiconductor Company. Kun hee Lee saw the potential in the semiconductor industry, and the investment will offer higher offer higher growth rates. Since the company was relying on labor-intensive assembly lines, importing semiconductors and other advanced products from abroad, the target was the ones who consume low-end electronics.
Samsung built its fist large manufacturing facility in the mid-1980s. With the hard working employees aiming to achieve the company's mission, it was able to compete in the global memory industry. In developing technology, Samsung did not withdraw in making risks and stepping up to the next level. It always tried to invest in new technology and did not fall into the success trap. By doing that, Samsung was able to have a wide range of products, which can be divided into three groups; "frontier-products", "Legacy products" and "Specialty products".
The array of different kinds of products made Samsung acquire customers from different segments; from the cutting-edge tech to the old generation, plus a niche market. However there were times when Kun hee Lee realized products of Samsung were shoddy during sometime between in the 1980 to 1990. He argued to the employees that quality stands first always and in the late 90s Samsung was able to earn reliability as a competitive advantage. Many Chinese companies are challenging the incumbents of the industry and Samsung needs to reconsider where it stands in the market and if they should reposition or embed new strategies.
When Chinese companies are expected to have high potential to grow and which makes them easier to receive funds, there is no doubt that they will grow and take account a big part of the market share. As Samsung started out with low-end consumer electronics, the emerging Chinese companies are conducting the same way. Since Samsung has a wide range of products satisfying a wide range of markets, it could be a right decision for them to let go of the low-end and focus on the niche market or the high-end, high-quality products.