Samsung has extensively diversified its business beyond electronics to include industries like construction, shipbuilding, and financial services. It owns various subsidiaries that provide services across different sectors. This extensive diversification allows products and services from Samsung's various divisions to support each other. For example, a person in Seoul could be born at a Samsung hospital, live in a Samsung-built apartment, and travel on a Samsung cargo ship. Samsung's diversification started in the 1950s and it began expanding globally in the 1990s under the leadership of Lee Kun-Hee. It transformed from a low-quality electronics manufacturer to the world's largest producer of high-quality electronics like chips and panels. This transformation and extensive diversification has made Samsung

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2. Samsung Business Diversification Example
A Seoul resident may have been born at the Samsung Medical Center
and brought home to an apartment complex built by Samsung’s
construction division (which also built the Petronas Twin Towers and
the Burj Khalifa). Her crib may have come from overseas, which means
it could have been aboard a cargo ship built by Samsung Heavy
Industries. When she gets older, she’ll probably see an ad for Samsung
Life Insurance that was created by Cheil Worldwide, a Samsung-owned
ad agency, while wearing clothes made by Bean Pole, a brand of
Samsung’s textile division. When relatives come to visit, they can stay
at The Shilla hotel or shop at The Shilla Duty Free, which are also
owned by Samsung.

3. History of Samsung
 Samsung was established in 1938 by Founder Byung Chun Lee as a trade and
export company in Korea.
 They used to sell fish, vegetables and fruit to China.
 It became the co-operation in 1951.
 From 1958 Samsung began to diversify its business to other sectors like
financial, media, chemical and ship building.
 In 1969, Samsung electronics was established producing Television, Radio,
Mobile, Computer and other electronic devices.

4. Lee Kun Hee,
• In 1987, founder and chairman, Byung-Chull Lee passed away
and Lee Kun-Hee took over as chairman
• In the 1990's Samsung began to expand globally building
factories in the US, Britain, Germany, Thailand, Mexico, Spain and
China until 1997.
• Since Lee took control of Samsung in 1987, sales have surged to
$179 billion last year, making it the world’s largest electronics
company by revenue.
• Samsung, a conglomerate accounts for 17 percent of South
Korea’s gross domestic product.
• It employs 370,000 people in more than 80 countries,
New Leadership of Samsung

5.  In 1993, Chairman Lee gathered his colleagues and laid out a plan to transform
Samsung, then a second-tier TV manufacturer, into the biggest, most powerful
electronics manufacturer on earth.
 He decided to go through the high-volume, low-quality manufacturer to a high-quality
one.
 Firstly, they decided to make the key components for that industry which requires lot
of money to manufacture & they started with micro processor and micro chip.
 In 1991, Samsung started making LCD panels it sold to other television brands.
 In 1994 it started making flash memory for devices such as the iPod and smartphones.
How did the Samsung became World’s No.1
Smart Phone Maker

6.  Besides the Great Phone Incineration of 1995, the other reason for rise in Samsung
mobile was use of Google operating system in their mobile phones.
 The bigger screens proved to be a major selling point for Samsung.
 Now, Samsung smartphones come in sizes ranging from 2.8 inches to 5.5 inches.
 Apple’s approach is fewer models, each of them exquisitely designed. Samsung’s is try
everything, and fast. “
 Samsung employees are given incentives to come up with ideas like these. A cost
savings is calculated, and a portion of that is returned to the employee as a bonus.
How did the Samsung became World’s No.1
Smart Phone Maker

8. Market Analysis
As Samsung has risen, others have failed:
Motorola was split up and its handset business sold to Google (GOOG)
Nokia watched its long-standing No.1 position erode when it got blindsided by
smartphones
The Sony-Ericsson (ERIC) partnership dissolved
When it comes to mobile hardware, today there’s two brands and other desperate
crowds of brands.
Today, Samsung is probably the only other company that can throw a product
introduction and have people line up around a city block.

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