In recent years, Samsung Electronics' position in the technology market has been getting higher and higher. When global technology companies fell into a low ebb in 2001, Samsung was still making decent profits. This new star is gradually emerging in the market. In fact, when Samsung first entered the technology market, there were already many companies with mature technologies. As a latecomer to the market, Samsung's response is to adopt different strategies in technology, market and business development in order to catch up with the leaders and break out in the market. .

● Introduction to Samsung Electronics

Samsung Electronics was founded in 1969. Its initial business was mainly the production of low-cost products. In the 1980s, it began to develop the semiconductor business, and then gradually developed into the high-end product business. . By the 21st century, its main business scope includes semiconductors, digital media, communication networks and digital application businesses.

Semiconductors, with Intel as its main competitor, are Samsung's core business, and Samsung mainly focuses on the development of the memory market. In the 1980s, Samsung's main business was the development of dynamic random access memory (DRAM), and has now expanded to static random access memory (SRAM), flash memory, personal computers, servers, workstations and mobile digital products. Samsung's market share in the DRAM business has been impressive over the past 10 years, ranking first in the market, and its flash memory market share has also reached the first place in the world.

In terms of digital media business, Samsung mainly develops TVs and DVD players. Its products include plasma and LCD displays, thin film transistor liquid crystal (TFT-LCD) displays, etc. Its main competitors include Sharp, Sony and LG.

Samsung also develops communication network business and digital application business. Samsung is the third largest manufacturer of mobile phones, second only to Nokia and Motorola, and is also the largest manufacturer of CDMA mobile phones in the world. The digital application business focuses on the development of high-end home appliances, including refrigerators, air conditioners, washing machines, and microwave ovens.

It is no exaggeration to describe Samsung as a latecomer to the market. Samsung Electronics entered every business later than its main competitors. The home appliance business was 51 years later than Panasonic, the semiconductor business was 10 years later than Intel, and in the communications business, which is mainly mobile phones, Samsung was far behind Nokia. A full 122 years.

Samsung’s “Firstism”

Samsung Group Chairman Lee Kun-hee advocates a “new management that emphasizes quality” and shifts from focusing on external “weight thinking” to focusing on quality and functionality. "Quality thinking" and implementation of "Firstism", with the goal of becoming a leader in the digital convergence revolution and becoming one of the top three in the world. He believes that the 21st century is an era of mega competition, and success or failure will depend on how many global No. 1 businesses are retained.

Samsung has developed rapidly in recent years. Samsung has jumped significantly in the Fortune Global 500 rankings, gradually closing the gap with its main rivals Sony and Panasonic. In 2003, it also climbed to the third place in the IT 100 list of "Business Week" and was selected as the fourth most admired electronics company by "Fortune" magazine. From its position in various businesses mentioned above to its return on assets, it shows that Samsung has followed competitors such as Sony and Panasonic, and its brand value has also continued to rise.

So what strategy does Samsung rely on to “surpass Japan and catch up with the United States”? This case will explore how Samsung uses different strategies in technology, market and business development to gradually catch up with industry competitors.

Development at the technical level

In the early stages of development of general technology companies, all R&D projects can only be started from scratch (stage 0). However, because "stage 0" research and development requires constant trial and error and continuous improvement from mistakes, the required costs and development time are also greatly increased.

But Samsung Electronics’ R&D direction is exactly the opposite. Lee Kun-hee once said: “If you pay 100 million won, you can obtain the technology in a week; if you insist on investing 1 billion or 2 billion won, it will take 3-5 years of development, which is a waste.

It doesn't matter if you pay 5 for the technology fee, as long as you can get the Know-how and get 10 of the benefits. ”

As a latecomer technology company, Samsung understands that its first priority is to shorten the technology development gap with first-mover companies in the industry as quickly as possible amid fierce competition. Therefore, Samsung takes It has developed a research and development direction that is different from others - "reverse engineering". It introduces technology by paying patent fees, then learns other people's technology through imitation, and then transforms it into a research and development direction suitable for Samsung. This is exactly "reverse engineering". "The key point. Samsung is to purchase patents and imitation technologies to replace the "Phase 0" R&D that requires long costs and long R&D time, and shortens the distance with technology leaders in the shortest possible time.

Semiconductors were Samsung's first products to gain the title of world leader. At the initial stage when it lacked core semiconductor technology, Samsung sent seven senior technicians to the American Micron Technology Company to request technology authorization twice, and introduced Micron's semiconductor technology at the cost of patent fees. After that, through continuous technical research, Samsung Semiconductor took only 6 years to launch 64Kb dynamic memory technology (4 years behind), 64Mb dynamic memory technology (synchronized with the United States and Japan), and even 256Mb dynamic memory technology (leading the world). Time.

LCD monitors are Samsung’s second cash-generating product. Like semiconductors, Samsung obtained the license to produce liquid crystal chips from National Semiconductor in the early stages. Solve the problem of lack of core technology. After adding the low-voltage differential signal (LVDS) and low-amplitude differential signal transmission (RSDS) interconnection technology of our own industry, the number of components has been reduced by half, which has greatly reduced the cost of LCD displays. Under the price strategy, Samsung has successfully achieved the world's number one market share.

Samsung's mobile phones have successfully entered the ranks of the three major mobile phone manufacturers in a short period of time. In addition to Samsung's mobile phones, they have spent a lot of effort in the market. In addition, the development of CDMA is also very important. After cooperating with Qualcomm in the United States to obtain the authorization and commercialization of CDMA technology, which was not optimistic at the time, Samsung became the largest manufacturer of CDMA mobile phones by continuously promoting the advantages of CDMA technology. CDMA gained support in the market, and the number of global users surged from 5 million in 1997 to 174 million in 2003, indirectly causing Samsung's mobile phone market share to rise to third place in the world.

Since then. Among the three major products, Samsung adopts "reverse engineering" and introduces the core technology of the product first, eliminating the development time of "stage 0" and greatly shortening the distance with technology leaders.

The biggest disadvantage of Samsung's reliance on patents to develop its technology is that it has to pay a large amount of patent fees every year. As for other peers, such as Sony and Panasonic, they develop their own basic technologies, so they do not have any patent fees.

But even though it has to pay patent fees every year, Samsung can benefit from the "reverse engineering" strategy because there is no "stage 0" research and development, so Samsung can catch up with the technology leader in the shortest time. Moreover, Samsung can significantly reduce R&D costs. According to each company's annual report, Samsung's R&D amount is only 20-30% of that of other companies, and the total amount of money Samsung invests in developing technology (R&D costs + patent payment) is also far lower than that of its peers.

In addition, because Samsung’s R&D expenditure is lower than that of its peers, its average cost of patent rights is more than 50% lower than that of other companies, which shows that its R&D is more cost-effective than its peers.

Samsung's market strategy

By adopting the "reverse engineering" technology strategy, Samsung can close the distance with technology leaders in the shortest possible time and reduce R&D expenditures. Make research and development more efficient. Compared to other major competitors in the market, Samsung is developing at an alarming rate in the market. Taking mobile phones as an example, Samsung's market share is rising year by year, and its annual growth rate is higher than other competitors. It has begun to threaten Motorola, which ranks second.

Samsung also has good results in other businesses: in 2003, Samsung's dynamic memory (DRAM) chip market share was 32%, occupying the top position in the market; LCD monitors also occupied the first place in the market, with a market share of 32%. 18; In the large-screen TV market, it also has a market share of 32%, ranking first.

After successfully closing the gap with technology leaders, how does Samsung continue to develop its technology? We found that Samsung’s late-stage technology development strategy was no different from that of other companies. Moreover, as a latecomer to the market, Samsung's technological achievements alone are not enough to gain a certain share of the market in just a few years. To stand out in the market, it is necessary to have external cooperation and add value to products based on the results of technological research and development. In order to add value to its products, Samsung has invested a lot of resources in two aspects of development: valuing design expertise and being close to market needs.

In addition, Samsung relies on "strong cooperation" in its later technology development, that is, it cooperates with other world's top technology companies to develop new technologies, such as developing the 7th generation LCD monitor with Sony *** and Work with IBM to develop more sophisticated flash memory. Every year, Samsung has an average of more than ten "strong cooperation" development opportunities. Through "strong cooperation", Samsung can not only develop new technologies but also reduce risks during research and development.

Because its late-stage technology development strategies are similar to those of other companies, Samsung’s R&D results are not unique. According to statistics from the U.S. Patent and Trademark Office, Samsung’s annual registered patents are not the best compared to other peers. Samsung would rather cooperate with other strong players than develop the latest and fastest technology alone. It can be seen that Samsung’s goal is not to strive to become the A leader in technology. As a latecomer to the industry, in order not to compete head-on with other companies on the technical level, Samsung uses other strategies, such as market acumen, to strengthen its competitiveness.

● Product value-added strategy 1: Value design expertise

Lee Kun-hee once said: “A genius can support 100,000 people.” Therefore, Samsung continues to recruit R&D experts locally and around the world. talent. Samsung currently has 11,200 employees with master's and doctoral degrees, and plans to add about 1,000 more every year. In addition, Samsung's R&D department has approximately 19,700 people, accounting for 34% of its total employees.

Samsung has invested a lot of resources and established a number of design academies around the world, such as the Innovative Design Lab of Samsung and Samsung Fashion Institute, which mainly provide specialized advice on product design to Samsung's subsidiaries, and provide Professional training for young designers. In addition, Samsung has cooperated with the internationally renowned Parsons School of Design to establish the Samsung Art and Design Institute to stimulate the creative thinking of designers.

These academies have helped Samsung cultivate a group of outstanding employees. Compared with other major competitors in the market, each Samsung employee's contribution to the company's profits is far greater than that of its peers. Especially in the mobile phone market, although Samsung has still not climbed to the top position in the market, the profit contribution per employee is higher than that of Nokia and Motorola.

● Product value-added strategy 2: Close to market needs

In order to keep close to the needs of consumers in the market, Samsung has established 13 R&D centers around the world, specializing in the research of products for local markets. development. Samsung's development network covers the world. R&D and sales organizations established in various places regularly conduct surveys on consumer life, population preference trends and other aspects to analyze the needs of consumers in various places. By conducting these market surveys, Samsung selects representative consumer groups and then designs based on their needs. Therefore, we can see that Samsung will consider the needs of mass consumers and follow the development of trends from product planning to production.

Compared to other competitors, Samsung is often the first company to launch fashionable products in the market. For example, Samsung has conducted a survey to gain a deeper understanding of women's requirements for mobile phones, and has launched a number of mobile phones designed for women, which may have functional designs to cater to women, such as mirrors, powder boxes, etc., or have more distinctive shell-like shapes and Seven-color background screen. In addition, Samsung identified the needs of high-end consumers through surveys and developed a comprehensive home entertainment system that integrates all home appliances and communication devices using wireless link technology. Users only need to use a TV remote control or mobile phone. Can control any appliance in the home.

Li Jianxi said: "Design and creativity are the most precious assets of a company, and they are also the final key to the success or failure of business operations in the 21st century." On the one hand, Samsung is constantly improving its research and development capabilities, and at the same time, it is also investing heavily in Resources come from its design schools and global development network. Samsung has adopted two key strategies to transform its technological achievements into products that cater to consumer needs: market-driven R&D and product design.

Market-driven R&D Samsung positions itself as a "leading company in the digital age", different from those technology companies driven by basic research. Samsung uses limited resources to focus on developing Applicable Technology to lead the evolution of digital life. The main focus of Samsung's patented technology is to "integrate digital applications into life". By bringing user-friendly technology into products such as memory, mobile phones, and LCD monitors, it brings a variety of conveniences to users. Digital products bring a new lifestyle and become a symbol of fashion and trend, which are very attractive to the new generation who are good at accepting new things.

The best-selling of Samsung digital products has verified an axiom: the advancement of technology itself must be combined with actual needs, and even achieve technological innovation that creates demand; only by truly meeting the needs of mass consumption, relying on technology and applications Only by paying equal attention to the advantages can we quickly occupy the market.

Product Design With the rapid popularity and penetration of digital applications, a huge consumer group is gradually forming. On the basis of adhering to the advantages of R&D and product performance, Samsung also emphasizes personalized appearance design according to the different preferences of consumers. In line with the "friendly" brand image, Samsung emphasizes the "humanized" design concept: for example, to facilitate users' daily operations, it not only adds a "shortcut key" for taking pictures on the side of the camera phone, but also pioneers the 180° double-rotation function of the flip cover. ; Samsung's LCD TVs use brightness sensing technology to automatically adjust the screen brightness based on the brightness of the external environment.

The popularity of Samsung products is based on excellent quality, and the appearance design of the products also plays a decisive role. Survey results released by the China Consumers Association show that Samsung mobile phone design ranks first, surpassing many foreign brands. Since 1998, Samsung Electronics*** has won 17 Excellent Design Awards from the Industrial Designers Association of America (IDEA), becoming the company with the most awards in the world for five consecutive years, and its inventory turnover rate has been higher than that of its competitors for many years. .

Business Development Model

In addition to using technical strategies to shorten the distance with competitors and using market strategies to promote sales, Samsung’s business development strategy based on semiconductors has made He can do a good job in internal management.

Before talking about the actual strategy, let's talk about the importance of semiconductors. Semiconductors, chips, displays, and wireless technologies are all necessary parts of digital products, and Samsung’s development goal is the integration of digital technologies. To achieve this goal, Samsung adopts a model of developing mobile phones and other digital products based on semiconductors and liquid crystal displays. , in order to form its own competitive advantage.

Except for Samsung, which has complete vertical integration, Sony and Nokia do not produce memory in semiconductors and cannot benefit from vertical integration. Moreover, the dynamic random access memory (DRAM) in Sony and Nokia products is purchased from Samsung Electronics, which shows that Samsung's semiconductor foundation is stronger than its peers.

Samsung’s business development model is based on the stable position of semiconductors, and then expands into LCD, information dissemination, communications and other business areas. We can illustrate it from the following Samsung business development history:

Samsung established its semiconductor status after successfully developing the world's first 256MB DRAM in 1994. The following year, Samsung signed an LCD technology cooperation with Fujitsu and developed a 22-inch TFT-LCD for the first time in the same year. Since then, Samsung has been committed to developing its semiconductor and liquid crystal display businesses, and based on these two businesses, it has developed digital businesses such as mobile phones and digital TVs.

Over the years, Samsung's semiconductor business has matured and gradually threatened its leadership position. Just looking at the comparison of capital return on capital between Samsung and its semiconductor peers in 2003, Samsung's performance has caught up with Intel's.

In addition, from the comparison of return on assets, Samsung's return on assets is also relatively stable compared to its peers. Although Samsung's semiconductor business is second only to Intel, its performance has increased year by year. In 2001, it surpassed the leader Intel for the first time, gradually threatening Intel's position. The above comparison proves that Samsung's semiconductor business is becoming increasingly mature, but how does the semiconductor business help Samsung establish a competitive advantage?

1. Stable supply of parts

Samsung's subsidiaries produce semiconductors and other related parts, providing a stable supply of parts for Samsung's monitors, mobile phones and other digital products. Take Samsung Display as an example:

Samsung Semiconductor, Samsung Electronics, Samsung Corning, and Samsung Electro-Mechanics have long provided display components and raw materials to Samsung Display, creating Samsung Display's "vertical production system". This advantage This has enabled Samsung's LCD monitors to occupy the top position in the market share.

Samsung's subsidiaries have close relationships. In order to provide a stable supply of parts, each has sales contacts, thus forming a very important internal market demand. Samsung's internal sales account for an average of 40% of total sales. The internal market plus external sales can create greater market demand, helping Samsung control costs on a large scale and enhance competitiveness.

Comparing Samsung with other electronics company competitors, we found that Samsung’s cost of sales is lower, which can be attributed to the results of Samsung’s internal market and vertical production system. Samsung's profit margin is much higher than that of other competitors, which also shows that Samsung controls costs better than its peers. On the contrary, due to the lack of stable parts supply, we found that Japanese TV manufacturers have to bear the risk of high costs and unstable supply because they rely on the supply of LCD products from South Korea and Taiwan; and after Motorola spun off its semiconductor business in July 2004, The result is a shortage of chips.

2. Promote the development of upstream business

Samsung’s semiconductor-based business development strategy not only establishes a stable supply of parts for Samsung, but also helps Samsung promote the development of upstream business. We can explain it from how Samsung's various businesses promote the development of mobile phones.

Samsung’s memory, LCD display, color screen technology and camera lens are all core components of Samsung phones. Breakthroughs in various technologies can promote the development of the mobile phone business, including the first to launch dual screens, rotating lenses and 5 million pixel mobile phones and other high-tech products.

The success of Samsung’s business development strategy is due to the integration of Samsung’s various subsidiaries and businesses. The products produced by Samsung Electronics’ affiliated companies have reached a certain level in the world, including: Samsung DRAM has been the world's largest market share for 10 years. The high-voltage voice changers and tuners produced by Samsung Electro-Mechanics have the world's largest market share. The global market share of picture tubes and LCD screens produced by Samsung SDI ranks second in the world. wait.

Summary

When Samsung first entered the technology market, there were already many competitors with mature technologies. As a latecomer to the market, in order to gain a foothold in the market, it must first catch up with the technological pace of the industry. .

Samsung adopts the method of purchasing patents and subsequent "reverse engineering" to absorb technology efficiently to shorten the time and reduce the resources invested.

When Samsung gradually caught up with the technological pace of the industry, Samsung did not strive to be a technology leader. Instead, it adopted an external market strategy to increase the added value of its products based on its developed technological achievements and promote product sales. Competitiveness; and internal business development strategies, good internal management, cost control and synergy.

Even though Samsung is a latecomer to the market and lacks technological advantages, by adopting the above strategies, Samsung has come from behind and become a star company that attracts global attention. This is something that companies that are new to the technology market can learn from Samsung. place.

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With debts of US$17 billion, it has become the world's largest manufacturer of memory chips, displays and color TVs, as well as the largest CDMA mobile phone As a manufacturer, it only took 5 years for Samsung Electronics to create a business miracle. Rather than saying that Yun Jong-ryong of Samsung Electronics saved the company, it would be better to say that he rebuilt the core competitiveness of the company.

The selection of the 2003 Best Managers in the Industry by the US "Business Week" has entered the final selection stage, and the final results will be announced on January 12. Yun Jong Yong, CEO of South Korea's Samsung Electronics and deputy director of Samsung Group Headquarters, is expected to become the best manager in the IT industry of the year as a representative of Asian business. The manager is famous at home and abroad for reshaping South Korea's Samsung Electronics and leading the company's transformation into manufacturing digital consumer products.

Yin Jongyong: Samsung's "Management Madman"

The 59-year-old Yoon Jongyong graduated from the Massachusetts Institute of Technology in the United States. He joined the South Korean Samsung Group in 1966 and served for 37 years, successively taking charge of Samsung. TV business department, R&D department and other important positions.

Since its record profits in 1995, Samsung Group has continued to slide into the abyss. As the main business of Samsung Group, the semiconductor industry has suffered a sharp decline in business volume due to the sudden drop in international market prices; the competitiveness of Samsung's video and audio-visual products has continued to decline due to the impact of other Asian countries, especially China's home appliance industry; reaction to the market The sluggishness also exposed Samsung's internal management problems.

In 1997, the Asian financial crisis affected South Korea and the bubble economy burst. Many Korean conglomerates are struggling to survive in the precarious situation. From the end of 1996 to the third quarter of 1997, Samsung Group's business was in overall crisis. Long-term debt reached $18 billion at its worst, almost three times the company's net assets; poor production management led to serious inventories; and it had too many non-core resources.

Samsung Electronics, which set a profit record of US$2.2 billion in 1995, was forced to the brink of bankruptcy. An old employee was urgently recalled to South Korea from the Japanese market by the board of directors. Later, he was told that the board of directors and the labor union had recommended him to take charge of Samsung Electronics - this old employee was Yin Jongyong.

After realizing that the drastic change in the environment required radical changes, the first important decision made by Yin Zhonglong after taking office was to sell a large amount of existing inventory at a reduced price and actively collect accounts receivable. Samsung Electronics has aggressively reduced inventories, cut costs, sold off $1.9 billion worth of underperforming assets, including the jets used by senior managers and its entire semiconductor unit, scrapped lengthy lectures and presentations and even closed the company's golf course. club. This move greatly increased the company's cash income, reduced its debt to less than 50%, and significantly improved its debt structure. A year later the company turned a profit.

In the second step, Yin Jongyong reorganized Samsung Electronics’ core business. About half a year after the Asian financial crisis, Yin Jong-yong led the company to focus on developing the most critical areas. He sold or divested many of his original businesses and worked hard to establish a more balanced commercial and business structure, which greatly enhanced Samsung Group's ability to resist market risks. In 1995, more than 60% of the Samsung Consortium's revenue came from semiconductors. By 1999, the situation of single financial revenue had been significantly improved.

In the third step, Yin Jonglong had to face the largest corporate layoffs since the founding of Samsung Group. Samsung Electronics laid off 30 employees in management positions and 35 in non-management positions. Because of this, Yoon Jong-ryong was called the "layoff strongman" by the Korean business community, and some people also called him a "management lunatic from the West." "We tell employees this message through many training programs and market meetings: Samsung Group employees must be prepared to survive. We must use very innovative methods to change the company's financial mechanism and strengthen the company's competitiveness."

High-end brand strategy: Yoon Jong-ryong reshapes Samsung

Getting rid of the threat of economic crisis is just the beginning. After 1999, Yin Zhonglong gradually turned his attention to improving the connotation of Samsung Electronics' consumer brand. The reborn Samsung Electronics is no longer a low-end consumer electronics brand, but a refreshing rising star that can compete with world-renowned brands such as Sony, Motorola, and Philips.

The company positioned itself as a high-end brand and not only adopted a more carefully planned marketing strategy, focusing on the production of high-end electrical products and mobile phones; it even decided to completely abandon low-end products. Yin Zhonglong withstood pressure from various aspects and persuaded the major shareholder Li Kunxi family to greatly shorten the inventory cycle, which was more than 2 weeks shorter than competitors on average.

Yin Zhonglong even stood at the counter himself to demonstrate the sales of electronic products. Samsung Electronics has a "sashimi marketing theory", that is, electronic products are like sashimi. They must be sold while they are fresh, otherwise they will be difficult to sell when they become "dried fish". Soldiers are expensive and fast, and Samsung Electronics' products will always be "sashimi" on the market.

In the global high-end electronics market, Samsung Electronics continues to take the lead in launching various advantageous products: high-end mobile phones, wide-screen rear-projection color TVs, memory chips, digital camcorders, and digital cameras, and it competes every time. The opponent is caught off guard and uses his or her time advantage to earn the highest profit.

While improving management and research and development, Yin Zhonglong has adopted a more active talent strategy. Even during the financial crisis, Samsung Electronics still invested heavily in human resources. In the past five years, the company has recruited more than 800 PhDs and more than 300 MBAs graduated from prestigious European and American universities.

Yoon Jong-yong also reorganized operations in the United States, Samsung Electronics’ key market. In 2001, he appointed Oh Dong Jin as CEO of the US division, introduced Peter Skarizhensky from AT&T to be in charge of mobile phone sales, and hired Peter Widfall who had worked at ViewSonic and Computer World magazine. Virtue leads marketing.

Yin Zhonglong also brought fresh blood to the company headquarters in Seoul - he stuffed a foreigner into the board of directors. New member Eric King, 48, was appointed executive vice president of global marketing in 1999. Jin's stubborn character once caused dissatisfaction among many managers in the British branch, but Yin Zhonglong gave Jin's firm support for his work. Later, Samsung Electronics recruited many senior talents with overseas work background and opened up a green channel in human resources.

After transformation, Samsung Electronics has become a "network company" with flexible decision-making. The networked enterprise concept advocated by Yoon Jong-ryong is not only about scientific internal management. During the transformation process of Samsung Electronics, the enterprise has been given a very open decision-making and implementation process. The core is to make all kinds of information openly and widely transmitted from bottom to top. , involving both management and those being managed actively.

Yin Zhonglong emphasized that important and correct decisions can only be made with transparency and clarity. Establishing new ways of working is the key to managing change. After the reform, Samsung Electronics' independent production department will be more autonomous and shift from the original centralized management system to a network-based management structure.

“This allows our company to make decisions faster and improve efficiency compared with other companies.

"Yin Jonglong participated in the Asian Business Annual Conference to summarize the experience of Samsung Electronics' restructuring and said, "The company's competitiveness depends on the company's development capabilities and the quality of the company's internal information exchange network. "

Yoon Jong-yong established a new vision goal for Samsung Electronics to "lead the revolution of digital convergence." To achieve this ambitious goal, he formulated a major plan called "Digital e-Enterprise", the essence of which It is a strategy to maximize customer and enterprise value. It adds value and optimizes the supply chain by providing comprehensive solutions and centralized processing methods.

Samsung Electronics is once again ahead of its competitors. The industry predicts that digital products will become popular within five years. Digital TVs, various digital home appliances and network facilities will be widely used. If the digitization of personal communications and family life becomes a reality, Samsung Electronics will have growth opportunities. Nearly 7 billion US dollars in cash created conditions for R&D, factory construction and marketing. With clear goals and strategies, Yin Jonglong successfully united the entire company's employees around him. In 1999, Samsung Electronics achieved order. Surprising results - the company's revenue increased by as much as ten times, the company's stock rose by 233%, and its net income soared by more than 100 times.

In 1998, Yin Zhonglong was named "College Engineer" in Atlanta, USA. magazine awarded him the "Outstanding Management Achievement Award"; in 1999, he was named Asia's Best Business Person of 1999 by Fortune magazine; in 2000, Business Week named him one of the top 25 managers of the year. Samsung Electronics’ net income exceeds US$5 billion

Strive for differentiation: Samsung wants to be among the top three in the world

Looking back at the beginning of Yin Jong-yong’s tenure, he always reminded his managers, “We are here at any time. "It may go bankrupt." By 2002, Samsung Electronics' sales reached US$33 billion and profits of US$6 billion. In 1970, Samsung Electronics was still doing odd jobs for Sanyo, manufacturing 12-inch black and white TVs for it. In 1997, Samsung Electronics Electronics also has to buy chips from Sony or Japan's Mitsubishi Electric, and now it has begun to threaten the dominance of Nokia and Motorola in the mobile phone market and compete with Sony and Mitsubishi for the high-definition color TV market.

“Samsung Electronics will lead a new digital revolution that changes everything and become one of the top three companies in the world within eight years. "This is the goal of Samsung Electronics CEO Yoon Jong-yong, and it is also Samsung Electronics' future corporate strategy.

"We are not only passionate about creating consumer electronics products, but also creating an artistic lifestyle. We are committed to developing into a well-known and inspiring brand. The digital integration revolution we lead will bring revolutionary digital integration products to consumers, thereby transforming people's lives in the future. ”

The Chinese market has absorbed US$2.1 billion from Samsung Electronics. It is the overseas market in which Samsung Electronics has invested the most outside of its home country. It has invested in the Chinese market for ten years and its business has expanded astonishingly in the past ten years. Currently, Samsung Group has 12 production plants in China Enterprise, 6 sales enterprises, with a cumulative investment of 2.6 billion US dollars, mainly producing mobile phones, TVs, monitors, laptops, printers, white goods, semiconductors and other products.

In 2002, the size of Samsung's China business unit was approximately. 6.3 billion US dollars, this year's target will reach more than 10 billion US dollars, of which exports account for about 30%. In the past five years, Samsung Electronics China's business scale has achieved a high average annual growth rate of 40%. It is expected that by 2010, Samsung Electronics China's business scale will grow. It will quadruple to US$40 billion.

At present, Samsung Group is planning to further change its investment direction in China. First, the investment centered on manufacturing will be transformed into a comprehensive one including R&D, production and marketing. Directional investment; second, improve the technical content and grade of investment projects, and expand the business scale of rear projection TVs, PDP, DVC, AMLCD, notebook computers, and printers; third, strengthen brand management, establish a digital brand image, and increase brand value.

The pressure of competition in the Chinese market comes not only from the well-known Fortune 500 multinational companies, but also from rapidly growing local companies, such as Waveguide in the mobile phone manufacturing industry, TCL in the color TV industry, Lenovo in the PC industry, Haier and Hisense in the traditional home appliance industry are both right about three