Samsung Group Success
Samsung Group Success
Bus 478
Wing Hung
#200138620
October 11, 2007
Samsung is one of the biggest conglomerates in the world with businesses established in shipbuilding, contracting, and electronics. Global revenues in 2005 alone reach over 56.7 billion (Secrets of Samsung 's innovation success, 2006) and brand tracking firm Interband ranked Samsung as the 20th most valuable brand in the world (As Sony gets a tune-up, Samsung Zooms Ahead, 2005). Samsung was not really recognized as an international powerhouse until the 1990s where before it was largely considered only a household name in Korea. So what lead to the success of Samsung in the 1990s? While there is no one deciding factor or event that lead to Samsung 's success, many would agree that their entrance and their efficiency in to the semiconductor market and innovative adaptation of the six sigma supply chain management has lead them to be one of the best managed firms in the world.
Samsung 's semiconductor business accounted for nearly a third of the 56.7 billions dollars of revenue generated in 2005 (Secrets of Samsung 's innovation success, 2006). Despite entering the semiconductor business late in 1983, Samsung is now the world 's 2nd largest semiconductor distributor behind Intel. The turning point in the company 's history was in February of 1983 when Lee Byung Chul, the CEO of Samsung Group made a push towards a large investment in memory chips and was determined to break into the semiconductor market (Kim, 1998). Lee Byung Chul recognized that there would be a need in the future for more memory chips and he identified that this was going to be the trend. I believe that Samsung realized that the semiconductor business was only in its initial stage of Foster 's S-curve and that with careful planning and the right product, they can still capture market share from established companies. The only question now is what kind of memory chip did they want to investment in? Memory chips
Bus 478
Wing Hung
#200138620
October 11, 2007
Samsung is one of the biggest conglomerates in the world with businesses established in shipbuilding, contracting, and electronics. Global revenues in 2005 alone reach over 56.7 billion (Secrets of Samsung 's innovation success, 2006) and brand tracking firm Interband ranked Samsung as the 20th most valuable brand in the world (As Sony gets a tune-up, Samsung Zooms Ahead, 2005). Samsung was not really recognized as an international powerhouse until the 1990s where before it was largely considered only a household name in Korea. So what lead to the success of Samsung in the 1990s? While there is no one deciding factor or event that lead to Samsung 's success, many would agree that their entrance and their efficiency in to the semiconductor market and innovative adaptation of the six sigma supply chain management has lead them to be one of the best managed firms in the world.
Samsung 's semiconductor business accounted for nearly a third of the 56.7 billions dollars of revenue generated in 2005 (Secrets of Samsung 's innovation success, 2006). Despite entering the semiconductor business late in 1983, Samsung is now the world 's 2nd largest semiconductor distributor behind Intel. The turning point in the company 's history was in February of 1983 when Lee Byung Chul, the CEO of Samsung Group made a push towards a large investment in memory chips and was determined to break into the semiconductor market (Kim, 1998). Lee Byung Chul recognized that there would be a need in the future for more memory chips and he identified that this was going to be the trend. I believe that Samsung realized that the semiconductor business was only in its initial stage of Foster 's S-curve and that with careful planning and the right product, they can still capture market share from established companies. The only question now is what kind of memory chip did they want to investment in? Memory chips