Literature Review Of Samsung Company

Samsung electronics which was founded in 1969 is the largest IT company in terms of business
volume in the world. Most prominently the company functioned in semiconductor, display panel,
consumer electronics, and hand-held devices sector. From the South Korean state point of
view, the electronics industry prior of the 19070s were assembling imported parts while in 1966,
Ministry of trade and industry (MTI) decided to focus on the electronics industry and promoting a
5 years promotion plan. This allows Samsung to develop into a highly export-driven company.
Government supports comes in 2 different forms, the market influence, and political influence. In
the take off the stage of internationalization, as a part of the Government- Chaebol relationship;
supported and issued incentives to Samsung. This was also further governed by the strict goals
set by the policies makers.

Another observation by scholars also identified that Samsung was Market seeking displaying
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strong ownership in physically distant markets by accumulating experience. Samsung adopted a

latecomer mimetic strategy in entering the global market. Patinkin (1989) further confirms that
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Samsung in the electronics industry serves as the optimal example of a catch-up generic
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strategy. In the field of Semi-conductor, which Samsung had no prior experience on, Samsung
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hired scientist and researchers from existing companies such as IBM and Intel; set up R&D
facility in Silicon Valley at the heart of competition of the semi-conductor sector. In the 1980s,
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Samsung developed from being a follower/ latecomer into the market leader in memory chips.
Despite entering into the industry later than companies such as the NEC and Micron from US,
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Samsung rapidly caught up in terms of technological advances, revenue and market share twice
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fold of 20. 1% compared to Micron's 9. 2% in the DRAM sector; which was the area of which
would later on to become an important piece of technological ownership for internal hardware in
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modern mobile device. However, this foresight was credited not towards the government
support of the electronics industry, but towards the Chaebol's foresight of the future and
prospect of the semiconductor impact on future devices. In turn, giving the Chaebol an upper
hand in dealing/bargaining with the South Korea government.

In the present, Samsung remains in the innovation-driven stage due to their enormous and
centralized corporate structure. The capabilities in contributing to Samsung success could be
summarised below.

Creation speed competency - Adopted a vertical integration, goal driven fast pace management
speed as well as speed in making an investment decision and seizing opportunities. Synergy
was also attained through strong leadership by the owner which practices flexibility in
management, diversification, unified marketing network and clustered operation and servicing.
Samsung also has a strong internal leveraging capability in utilizing learned technology
knowledge across all their product.

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