Samsung is one of the leading enterprises in South Korea. It produces almost a fifth of the country’s total exports. The history of this company is rather unusual and interesting for study as its success can be characterized by non-standard solutions and approaches to business.
From Vegetables to Innovations
There is really no connection between vegetables and expensive smartphones; nevertheless, the history of Samsung’s high-tech brand began with the sale of vegetables. The founder of the company Lee Byung-Chul was selling fresh vegetables in his store. At that time, the little-known founder of big business began to process sugar. Then he came to a new business idea to work on the production of textiles and opened a factory. It is completely different areas of business, but precisely this fact makes Samsung case study an interesting topic for research. It proves that an entrepreneur should not be afraid to try himself in different spheres in order to find the best one. Lee Byung-Chul was not afraid. For all time of existence, the company has realized many business projects. The level of development brought it to the international market and the successful strategy for the Korean company was quickly expanded insurance industry, investments in securities and retail business.
The company was focused on the reconstruction of Korea after the war with an emphasis on industrialization and an important role was played by national legislation. The founder paid his attention to electronics and made the right choice. The state banned the import of electronics from abroad at the legislative level in order to maintain the domestic commodity producer. Therefore, this company had no competitors at those times.
Samsung case study strategic management can also be researched from a perspective of a pioneer company. It allows tracing what steps and decisions were made in the completely empty niche without competitors. It sounds like a dystopia in current time, but it is not excluded that one day one person will invent something great and enter the market where there will be no competitors as well.
The Epoch of Samsung Electronics
The creation of Samsung Electronics was facilitated by the restoration of diplomatic relations between South Korea and Japan in 1965. This allowed the head of the company to agree with the Japanese leadership on the technical support of the electronic industry, which was only emerging in South Korea. Samsung strategic management case study can also be conducted from a perspective of a joint work of a state and an entrepreneur for the common good.
Products Samsung Electronics quickly found buyers. In 1972, the company released the first black and white TVs, and in 1977 – color ones. At the same time, the corporation decided to expand its business by producing home appliances, washing machines, and refrigerators.
Samsung electronics case study analysis shows that the company has chosen the right place and destination of its activity. The political and economic situation in the state was more than just far from perfect, but the company managed to find loopholes and turn unfavorable conditions into favorable for itself and its customers.
The New Stage of Samsung
In 1987, the head of Samsung became the younger son of the founder Lee Kun-hee. During the economic crisis of the 1980s, state financial support ceased. Lee Kun-he had to thoroughly reform the corporation. He proposed to reduce subsidiaries, refuse to subsidize units and groups and to change priorities from the quantity of a product to its quality. In the new conditions, it was necessary to strongly encourage foreign investors to invest in Samsung.
Samsung strategy case study can also be made from the perspective of the development in changing economic conditions. The first decision was to reduce subsidiaries, and it is rather reasonable in a situation where it is needed to decrease expenses. Changing the approach to the quality of the goods at that time was quite a risky step because it meant an increase in the price, and as a consequence, the need to search for a new segment of consumers for which this price would be affordable.
What to Pay Attention to During a Research
Samsung is quite an old Korean brand whose history is absolutely different from the evolution of large European and American companies. Ability to balance on the tip of the knife, instantly respond to changes and be always on the alert is the distinctive qualities of the company. Many Korean companies went to the bottom, unable to withstand all sorts of sweeps and persecutions, and Samsung not only survived but also became a transnational corporation. A case study of Samsung company can be made if is needed to develop a new approach to business and learn how to think broadly and made brave decisions.
The success story of Samsung is a story of ups and downs. It cannot be said that the brand was born under a happy star. Its formation was very difficult, and the path of the founder was thorny. A tiny office in a small South Korean town, with sugar and rice, turned into a giant. The research of the history of this company may help to analyze its path in details and prove that there are no limits for a person who wants to achieve success. This company is also notable for the fact that at the time of its inception the founder did not even think about all the directions that he implemented as promising. He simply followed the trends, intuition and accurately determined the need of his potential buyers.
In 2014, Samsung entered the top ten most expensive global brands. Now the company is almost completely involved in the development of innovations, but its work also includes engineering, industry, services, and entertainment. It can be investigated from the point of view of a multitasking corporation. It considers all its activities to be the priority and strive to win new positions in competitive markets. In addition, the company can be proud of its loyal attitude towards its workers and clients, and it puts their goals and desires on the priority.