Samsung Electronics
For the exclusive use of W. Zhou, 2015.
HK1007
ALI FARHOOMAND
SAMSUNG ELECTRONICS: MANAGING
INNOVATIONS IN AN ECONOMIC DOWNTURN
At Samsung Electronics, we believe that crises are opportunities for innovation and that change is about action. It takes a different kind of strategy to navigate tough economic times and become one of the world’s leading companies. And we have what it takes to get there.1
This is a time of real crisis. Global companies are crumbling. We don’t know what will happen to Samsung either…Within 10 years, all Samsung products may disappear. Now, we have to start anew. Let’s move on, with eyes set straight ahead.
-
Kun-hee Lee, chairman of Samsung Group2
The global consumer electronics market was heavily affected by the global financial crisis in
2007. Major global mobile handset players prior to the global economic downturn included
Nokia, Sony, Motorola and Samsung Electronics. In the post crisis years, Nokia, Sony and
Motorola experienced a shrinking demand in developed markets and slipped in their rankings as leading handset producers, while Samsung Electronics and Apple launched new mobile handsets that were built on digital and media convergence and new design concepts. The premium Galaxy smartphone series achieved worldwide success and at once became the stellar growth engine of the company.
In spite of recent success, Samsung Group’s chairman Kun-hee Lee warned of the danger of complacency. The management team had to design, develop, manufacture and market products for a new market, while facing rising raw materials costs and fluctuating exchange rates that led to the dilution of gross margins. Samsung Electronics also began to lose ground in the semiconducting chips and TV markets to lower-cost products from companies in
1
2
Samsung Electronics (2008) “Annual Report.”
Taipei Times (March 25, 2010) “Lee Kun-hee Returns to Samsung,” http://www.taipeitimes.com/News/worldbiz/archives/2010/03/25/2003468850 (accessed February 2, 2013).
HK1007
ALI FARHOOMAND
SAMSUNG ELECTRONICS: MANAGING
INNOVATIONS IN AN ECONOMIC DOWNTURN
At Samsung Electronics, we believe that crises are opportunities for innovation and that change is about action. It takes a different kind of strategy to navigate tough economic times and become one of the world’s leading companies. And we have what it takes to get there.1
This is a time of real crisis. Global companies are crumbling. We don’t know what will happen to Samsung either…Within 10 years, all Samsung products may disappear. Now, we have to start anew. Let’s move on, with eyes set straight ahead.
-
Kun-hee Lee, chairman of Samsung Group2
The global consumer electronics market was heavily affected by the global financial crisis in
2007. Major global mobile handset players prior to the global economic downturn included
Nokia, Sony, Motorola and Samsung Electronics. In the post crisis years, Nokia, Sony and
Motorola experienced a shrinking demand in developed markets and slipped in their rankings as leading handset producers, while Samsung Electronics and Apple launched new mobile handsets that were built on digital and media convergence and new design concepts. The premium Galaxy smartphone series achieved worldwide success and at once became the stellar growth engine of the company.
In spite of recent success, Samsung Group’s chairman Kun-hee Lee warned of the danger of complacency. The management team had to design, develop, manufacture and market products for a new market, while facing rising raw materials costs and fluctuating exchange rates that led to the dilution of gross margins. Samsung Electronics also began to lose ground in the semiconducting chips and TV markets to lower-cost products from companies in
1
2
Samsung Electronics (2008) “Annual Report.”
Taipei Times (March 25, 2010) “Lee Kun-hee Returns to Samsung,” http://www.taipeitimes.com/News/worldbiz/archives/2010/03/25/2003468850 (accessed February 2, 2013).