“Change everything except your wife and children” has been the marching order since 1993 from Lee Kun-Hee, Chairman of Samsung, the world’s largest technology company by sales. Samsung continues to change: last week, Samsung announced its global growth strategy as “The Smart and Green Experience” at the Eighth Annual Samsung Mobile Solutions Forum in Taipei, Taiwan. Although Samsung is venturing into two new industry areas, green tech and life care, it will allocate most of its future investment – $17 Billion – in the green technology industry over ten years (See pie chart). Samsung is investing another $3 Billion in medical devices and biotech drugs in the life care sector that it is targeting for a total of $20 Billion to expand its global domain.
Given that Samsung comprised 13% of Korea’s GDP in 2010, it has set a lofty revenue goal in the green tech space of nearly $40 Bil. by 2020. Samsung’s success is similar to what Jack Welch led in his GE days when he was obsessed with his goal to be #1 or #2 in any business that GE entered. Here’s a snapshot of some of Samsung’s best market share rankings:
- #1: Market share in North America for total TV sales and sales of 3D TVs, LCD TVs, LED TVs and plasma TVs (sources: Display Search, Quixel Research and iSuppli);
- #1: Total U.S. mobile phone subscribers (source: comScore);
- #1: Worldwide market share of flash memory sales (source: Samsung);
- #1: Mobile phones sold in the U.S. (source: comScore);
- #2: Total mobile phones sold worldwide (source: Gartner);
- #2: Total refrigerators sold worldwide (source: Samsung);
- #2 Global semiconductor sales (source: iSuppli).
There may be other top categories not listed since Samsung claims that there are a total of thirteen products that rank #1 in global market share according to its website, yet it doesn’t list them specifically.
So as we Americans watch our favorite TV programs like NFL/NCAA football games, Modern Family, Dancing with the Stars or the latest investigative series, we are likely watching on Samsung TVs. When we place our cell phone calls to family, friends and colleagues, most of us are using Samsung smartphones or iPhones with 26% of iPhone 4 components sourced from Samsung. When we have late night cravings for something to eat or drink, more of us will be getting our snacks from Samsung refrigerators. We are living in a Samsung world.
So don’t be surprised with what you may find at every aspect of the 2018 Winter Olympics in Pyeongchang, Korea that will be sponsored by Samsung and powered by its three green ventures with Samsung’s:
- Solar-powered Olympic facilities,
- LED lighting throughout all Olympic stadiums, facilities and the Olympic village and
- Hybrid vehicles for Olympic transportation that will be powered by their hybrid vehicle batteries.
The future Samsung Chairman may announce at the opening ceremony: “We thank the Olympic committee for its belief in Korea, for we have finally achieved our dream and we have reached our destiny.” Of course, he will be referring to the ten-year struggle that it took Koreans to be awarded the 2018 Winter Olympics. Yet he also may be indirectly acknowledging Samsung’s future accomplishment that could show Samsung to be #1 market share in all of the markets it entered for every product within every region. After all, one of the more important tenets in Korean Culture is to “Never give up!” So listen closely to the 2018 Olympic crowds because no matter where you go, you will hear, “Dae Han Min Guk” (Korea) shouted over and over again, for they’ll be happy for Korea and happy for Samsung. Samsung could not have thrived without Korea. And Korea could not have prospered without Samsung.
What global company is capable of competing with Samsung? Your comments are welcome.
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© 2011 by Ed Valdez
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