Product details

In 2004, Samsung Electronics, the flagship company of Samsung Group, was the world's largest memory chip maker and Asia's biggest electronics manufacturer. Samsung's revenues accounted for 6.6% of Korea's gross domestic product. It had strategic alliances with various global companies such as Sony, IBM, Microsoft, Hewlett Packard and Dell. In 1997, the company was facing problems due to the Asian Financial Crisis, and at the same time, demand and prices of memory chips were falling. Yun, the Chief Executive Officer, took steps and transformed the image of the company from manufacturer of 'me-too' products to stylish, premium, latest technology products and helped the company to gain market share in each product segment. In 2005, the management of the company was worried as the dollar was depreciating; growth of cell phone markets were shrinking and oil prices were rising which hurt exports. An outdated family-controlled corporate structure was also a concern for Samsung. Would Samsung be able to sustain its growth when it was facing competition from local as well as global players? The case discusses how a market follower company restructured and turned itself into a leading global electronics manufacturer in the span of 10 years. The case highlights how the investment in research and development, even in times of financial crisis, helped the company achieve growth and become market technology leader. The case details Yun's style of leadership and the strategies he implemented to transform the company. The company's emphasis on research and development, marketing, brand equity, human resource, and inventory management helped the company to gain market share. As the company's main source of income was through exports, managing the fluctuation in the Won-Dollar exchange rates also became a matter of concern.