About Samsung

Samsung Electronics Co., Ltd is a well-known South Korean electronics company, which is served worldwide in fifty six countries. It total there are 124 Samsung offices around the world and the head-office is situated in Seoul, which is the capital of South Korea. Samsung electronics was established by the famous Korean businessman Lee Byung-chul in Suwon city. Although, this group joined electronic industry since 1960s.  Samsung Electronics consists of given subsections: Digital Media Network, Device Solution Network, Telecommunication Network and Digital Appliance Network. This multinational company produces a variety of mobile devices, computers, audio equipment, television sets and home appliances. Nowadays, it still maintains the position of the most popular and successful electronic provider. The purpose of Samsung Company is to make world better through theirs developed, innovative technology and highly qualified labour.

To start with, Samsung Electronics was developing rather rapidly. Initially, company was producing only some kinds of home appliances such as televisions, refrigerators and washing machines and reached a very high level of production.  Until 1981, Samsung had produced more than ten million televisions all over the world. At the same time, they opened the production of personal computers.  First mobile phone was presented in 1988, which sales seemed to be very poor, comparing with Motorola Company. The production of mobile phones was in a bad-quality approximately till 1990s. Company was working hard in moderating and improving mobile devices and as a result the quality of gadgets has reached the desired level. Furthermore, that it is very beneficial set a partnership with Samsung Company. The main partners at the moment are Google, Microsoft, Broadcom, Softeq Development Corporation and MICS.

The economic position of Samsung was slightly variable only because of strong competitive environment. It is however, important to mention, that the stable economic growth of South Korea has positively influenced on the improvement of Samsung Company’s productivity. It was one of the most famous and successful electronics companies during the period from 1993 till 2012.

At the end of 2007 Samsung Electronics was ranked among the Top-30 most expensive electronics brands costing 16,853 billions of dollars. In consequence of worldwide economic crisis in 2008, the overall amount of sales compared with previous years decreased notably by $112.7 billion and has risen to $126.7 billion in 2009. Samsung Company has been always struggling for its success by avoiding the influence of crisis in 2008. In 2010 annual sales increased noticeably by $143.7 billion. After all, the total amount finally  has gone up by 183.8 billions of dollars by 2011. 

By 2012, the total amount of company’s sales in the market has shown a sharp increase of about 247, 5 billion dollars. The overall amount of net income for that period that was equal to 18, 3 billion of dollars.   

     

In general, to everyone's surprise the whole raise in the amount of sales was mostly caused by selling new generation of electronic tablets and Galaxy smartphones all over the world. It seems to be the greatest benefit for the company. On the other hand, Samsung faces up with serious problem like overwhelming demand on mobile devices. To be more precise, there is no equilibrium at all between supply and demand.  According to the high quantity of mobile phones demanded, there is not enough devices supplied to satisfy all customers. Samsung Electronics managed to grow operatively because 90 % of the whole technique is produced internally, even including production of batteries and accessories. In 2012 Samsung held the position of the strongest electronics brand which total sails of mobile devices and electronic tablets approximately grew up by $107,526 billion in 155 countries. The company expected just a slight increase in demand and an appropriate satisfaction of their customers. As a result, the smartphone boom lead to such consequences that supply of smartphones is going to be limited in the nearest future because customers are willing to pay more and more for these electronic gadgets. According to Don-joo, who is the Senior Vice President of Samsung Company (2013) “Demand is far stronger than we had expected and as a result we are having difficulties in fully meeting initial supply requests”.

It is however, important to mention, that the whole production of Samsung Company is a long run production. To be more exact, the manufacture of all technique items is being produced in large quantities and for a long time. The specialization of this global corporation is technic production. The method of producing electronics is rather progressive. It requires certain amount of factories and professional equipment. In accordance with history of Samsung, technological gadgets such as televisions, mobile devices, computers are being produced approximately for about twenty eight years. The production of any gadget is rather complicated and serious process, which requires a variety of operations, modern technology and high-quality resources. On the whole, there are main factories situated in South Korea, Japan, China, Russia and England, which produce these types of electronic items.      

Nowadays, Samsung Electronics Company is exposed to some serious threats. They are: unstable world electronics, competitive environment and frequent litigation.  During the whole existence of this corporation, Samsung managed to overcome other electronic companies on the global market. After presenting new generation of mobile phones, televisions and home appliances this electronics company reached high level of production and left behind another companies such as LG, Philips, TTE. According to Interbrand in 2005, Samsung became the most popular brand in the sphere of electronics by competing with Sony Company.  In 2007 Samsung maintained the first position on the global market of electronics outstripping the main competitor, Motorola. Afterwards, Samsung Electronics has shown a large amount of total sales on European market finally displacing Siemens and Nokia companies from the highest positions in selling smartphones. Moreover, company has shown high level of production by getting a very high net income in 2007.  Upon the whole, competitive environment between Samsung and other electronic companies is rather tough and very strong. It is however, very important to mention that the most powerful competitor of Samsung Electronics during the whole existence of the company is Apple International Corporation. These two leading corporations are struggling with each other for more than eight years within the territory of ten countries. However, Samsung has been a major assistant for Apple in providing memory for the previous devices in 2005. All in all, the first rivalry happened in 2005 when Samsung accused Apple of repeating the same mobile design.

Very serious litigation on the global market happened in the beginning of 2011 between these competitive companies. By the end of the same year, the total amount of lawsuits increased by 19 times. Hence, they suffered from the great monetary loss and increased the number of theirs lawsuits by 50 times in the end of 2012. This happened because Apple Inc. announced that Samsung has stolen theirs ideas of producing new gadgets entirely. As a result, Samsung paid approximately 1 billion dollars to close the litigation. The only advantage of their competition is that this patent war helped them to improve, moderate and increase the quantity of theirs devices. As a consequence, both companies have shown an increase of their level of production, by producing much more than the half of all mobile devices worldwide and sold them in the middle of 2012. Therefore, Samsung and Apple companies are the world largest manufacturers in the global smartphone market. However, the whole share of Korean company is larger than the share of American Corporation and reaches 32% of the whole electronic market.  

To sum up, for over 30 years Samsung Electronics Co., Ltd is trying to develop the world of  electronics on the global market though theirs efforts. More than 370.000 employees in Samsung all over the world are creating solutions and innovating products. At the present time, this large Corporation even made 30 % increase in their annual budget. The Company faces up with serious threats in the competitive environment and still maintains the status of the world leader. All in all, Samsung is trying to develop the world of electronics through the implementation of technological projects. Samsung Electronics' slogan "Inspire the World, Create the Future."


                                                                                                                                              

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