Samsung Electronics Case Analysis

Samsung electronics has been around for decades and has expanded in many ways. In 1938 Lee Byung- Chul founded Samsung Electronics, originally manufacturing televisions, calculators, refrigerators and etc. In 2012 it was known as the one of the largest conglomerate companies that had an overall revenue of $248 billion. To become a conglomerate, a company must enter an industry that has no relationship to the industry in which it currently operates. Samsung became a conglomerate because it was involved with different industries such as electronics, chemicals, shipbuilding and construction. At first, being conglomerated may attract consumers, however it can also reduce company sales and management can experience difficulties with industry knowledge. Throughout the years, Samsung has been leaning towards becoming a highly diverse company. They want to fully utilize their existing resources and capabilities. Samsung 's main core competencies are technology leadership, innovative culture and customer satisfaction. For instance, Samsung launched its first mobile phone in 1980, which wasn 't very successful because of the quality. Due to the embarrassment and poor quality of the phone, the chairman sets fire to 150,00 mobile phones to show his disappointment. After that downturn, Mr. Lee Byung knew he had to increase the culture and …show more content…
Lee-Kun was not satisfied with the progress of Samsung. Lee wanted to commit Samsung to long term goals and results and produce luxury electronic items that would be highly innovative. As Rothemaeral stated Samsung’s “strategic intent was to be a leader in branded consumer electronics.” After Lee- Kun appointed a new CEO things started to improve drastically. Samsung started developing better products and they were responding quickly to change. They kept up with new trends and increased the customer