Samsung Diversification Strategy

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Samsung
Changing the Electronics Industry since 1960s

Samsung, founded in 1938 by Lee Byung Chul, has followed a strategy of diversification since its inception. It started as a trading company, but within the next 3 decades had moved into myriad sectors like retail, textiles, insurance & securities. It followed this strategy of diversification even more rigorously post 1950s when it entered into the electronics industry in 1960s and post that into construction & ship building industry.

This can be considered as a major turning point in Samsung’s history as electronics generate the most revenue for the company now. But another major change happened in the company structure post its founder’s death. In 1987, Samsung separated into 4 different business groups – Samsung Group, Shinsegae Group, CJ Group & Hansol Group.
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After its founder died, it tried focussing on the core business of Consumer Electronics, but now desperately trying to change its image of a core Consumer Electronics company. Started as a chemicals manufacturing company, which later diversified into a huge set of industries. Today, revenues are mainly drawn from chemicals and Electronics business.

Bothe companies, which originated in Seoul have been competing head on with each other since the last 60 years. The competition has been so intense that LG dragged its competitor to the court for spying on them.

However competitive both the technology firms maybe, they have been the lifestyle of the people of South Korea. They have changed the way people experienced TVs. Both the companies came out with the most innovative products, be it plasma televisions or the world’s 1st curved OLEDs. South Korea’s economy saw a boom because of the sales which these 2 innovations led companies

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