The irresistible rise of Samsung

Can be one of the leading global players in industries as carriers as televisions, mobile phones, electronics and other “high tech” and, so far, think … to make another thing. This is the strategy intends to follow Samsung. The chaebol (conglomerate) South Korea assumes that if all goes well, almost – and this is the case for him, as evidenced by the annual results published Friday, January 27 – that we consider to to move.

The chairman, Lee Kun-hee , son of the founder and initiator of the group moved in the 1990s, a manufacturer of cheap and of average quality in a technology giant, has asked 80 companies of the conglomerate to initiate new activities in 2020. “Samsung must be recast to become a world leader able to survive one hundred years ” , said in October 2011, the vice president of the group, Choi Gee-sung .

For now, Samsung can enjoy its performance. Benefiting from the success of its activities in mobile telephony – including smartphones – and in the semiconductor, the group saw its sales grow by 6.7% to 165,000 billion won in 2011 (112 billion euros).

Solely on the fourth quarter of last year, sales jumped 13% over the same period of 2010. While the annual net profit was down 15% to 13,730 billion won (9.3 billion), these performances confirm the positions of a group whose business is 10% of gross domestic product ( GDP) in South Korea.

In mobile phones, Samsung has sold more than 300 million devices in 2011 and if the trend continues, it could exceed Finland’s Nokia, the current world leader, by the end of 2012. Solely on the smartphone market, the South Korean manufacturer has dethroned Apple in number of handsets sold.

The year 2012, however, should be marked by the continuing legal showdown with Apple hired, about intellectual property rights on mobile devices. The launch of the smartphone Galaxy Nexus has been postponed out of respect for Steve Jobs, who died in October 2011. But the South Korean group is determined not to yield to avoid penalizing sales of terminals.

Number two in chips, behind the U.S. Intel, Samsung has also managed to overcome in 2011, the difficulties of an activity affected by lower sales of computers and a collapse in prices, particularly for components memoirs.

DIVERSIFICATION STRATEGY

As for TVs, the chaebol have seen the prices of its models back to 20% on average. The sector is stagnating sales, but Samsung remained positive for the future , even if fears over production problems.

He bought in December 2011, from Sony in the joint venture S-LCD, which produces models with flat screen liquid crystal display (LCD). Technological developments in the field of 3D, online services, templates and OLED screens including transparent, it should allow to see sales increase in 2012 to 50 million units, against 43 million in 2011, due to good performance in emerging markets.

Despite uncertainties about the economy, South Korea (growth did not exceed 3.6% in 2011) as globally, in 2012, Samsung plans to invest heavily: 47,800 billion won (32 , 4 billion), up 12% over 2011 and a level not seen since the group’s inception in 1938.

To prepare for its next molt, the group will spend including 13,600 billion won (9.2 billion) in research and development. And 3,200 billion won (2.2 billion) will be used for capital-intensive investments.

For the group intends to make acquisitions to establish its diversification strategy, in 2020, in new areas like health, photovoltaic cells or batteries for electric vehicles. Such mergers and acquisitions, which will allow quick access to advanced technologies, will be “carried out with courage and determination” , warned the vice president of the group. As a first step, by 2015, Samsung is first determined to achieve its goal of $ 200 billion (152.5 billion) in sales.

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This entry was posted on Sunday, January 29th, 2012 at 5:40 am and is filed under Technology. Tags: Samsung You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.