When talking about Samsung, everyone apparently feels familiar with the brand. Many people choose Samsung products for many reasons such as quality or value. Furthermore, Samsung
has a long history from its founding to the present day. It is a trademark that can guarantee quality, reputation, and reliability.
During 1980-1990, Samsung was only an ordinary Korean company. When time passed, Samsung realized that the company was lack of development and inward-looking. The company's output is a basic product, which lacks excitement. Therefore, Samsung must be in the game of price war. The product profit per piece was very low at that time. However, 1993 is the year of Samsung's biggest change. CEO Lee Kun-Hee decided to change the business direction from being a local company to a world-class company. CEO Lee Kun-Hee had the vision that business executives with knowledge would make the business grow quickly and excellent. According to his vision, he brought executives from the Western to work in the company. Moreover, he changed the human resource management by focusing on the skill and performance of employees. The company has motivated employees by increasing salaries, promoting, and focusing on performance over education, especially for Research & Development. Lee Kun-Hee gave a high priority to the Research & Development by investing huge money in this area as he wanted to transform Samsung to be a global company. As a result, 25% of Samsung employees focused more on Research & Development. Indeed, focusing on research and development has taken Samsung to the world-class company level. The percentage of the company's revenue was 9%. It is the number that Lee Kun-Hee is willing to invest in order to enter the global market and compete with Western products. As a result of dedication, Samsung currently has many affiliated companies that can be divided into 4 main groups. The majority of the revenue is generated from the Samsung Electronics group, which was founded in Suwon, Korea in 1969. After that, the company has become a world leader in information technology. There are more than 200 affiliated companies worldwide. The company offers many products including home appliances such as televisions, monitors, printers, refrigerators, and washing machines as well as mobile communication products and devices such as smartphones, mobile phone, and tablet PCs. In addition, Samsung also provides important electronic components such as DRAM and semiconductor memory.
Before the company has become successful as today, the company invested a lot of money and effort. Samsung compares its business with sashimi (raw fish) business. When the product is released, the product is still new at the beginning. There is not so many competitors or company that can imitate the product. Hence, the price of the product will be high. However, when time passed, more products and competitors enter the market. The price of the product will be decreased. The speed of adaptation and product design depends on consumer behavior, which is very dynamic. Therefore, it is essential to be adaptive. The company will not focus on presenting technological advances but focus on the product that can respond to a market's demand quickly. It is a thing that Samsung can do better than Japanese companies. Samsung realized that the success factors in their business are the speed, strategies, and management. The product design focuses on speed especially the speed of information. The information will be sent to the management team. After the management team makes a decision, the implementation will start. The use of speed to drive the company's competitive advantage will be difficult if the company has a hierarchical or silo organization structure that has complicated reporting lines, which is easy to cause conflicts and delay in decision making. Samsung is aware of the issue. Therefore, the company set up an organization structure that supports the speed of coordination and decision making.