In 2004, Samsung Electronics (Samsung) was world’s number one manufacturer of CDMA cell
phones, LCD and CRT monitors, DRAM memory chips and microwave ovens. With worldwide
electronic product sales of $27 bn, over 64,000 employees in 89 facilities, and a global network in 47
countries, Samsung has emerged as a global giant.
Samsung makes various consumer devices, including DVD players, big-screen televisions, and
digital cameras; computers, color monitors (number 1 globally), LCD panels, and printers;
semiconductors such as DRAM (number 1), SRAM (number 1), and flash memory (number 2 behind
Intel); and communications devices ranging from wireless phones (number 3, behind Nokia and
Motorola) to networking switches. Samsung also makes microwave ovens (number 1), refrigerators, air
conditioners, and washing machines.
Veteran Jong-Yong Yun (Yun), who became CEO in 1996, had cut costs and streamlined the
company’s operations. He has also invested heavily in establishing Samsung as a top worldwide brand.
The company’s huge marketing efforts (Samsung is a highly visible sponsor at the Sydney and Athens
Olympic Games) are meant to showcase Samsung’s premium electronic wares. The campaign is
backed up by intensive product development that focused on developing innovative high-end designs
for cell phones, LCD displays, and large screen TVs. Analysts estimate that Samsung’s brand value
doubled between 2001 and 2003, to more than $10 bn. Despite the downturn in the semiconductor
industry during 2001-03, Samsung invested heavily in new factories, including state-of-the-art chip
plants in South Korea and huge flat-panel display facilities in China. Samsung moved away from lowmargin
commodity DRAMs for PCs to high-margin DRAMs for specialized applications.
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