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Samsung Quick Background - 1938 founded as a trading company - in the 50s-60s
went into anything imaginable - like insurance- paper- aerospace- property-
retailing - used this base to lay themselves out for the semiconductor field
Lets Break Down how they did it
1) Entry into semiconductors- 75-83 - bought a
smaller semiconductor company in S.K. - wanted to expand out of low end goods -
worked with Micron Tech. and other US firms - had American engineers at plants
helping them
2) Catching the field - producing goods but wanted to be at the
same level - to do this put lots of $ into the department - trial and error
learning - accumulated debt- but looked toward the future - by late 80s started
seeing sales boom
3) Becoming a Leader - started to overtake the U.S. and Japan
firms it learned from in some categories - U.S. and Japan instead of helping out
simply bought in huge quantities - first company with 64 bit DRAM technology -
continued investment - forged equal partnerships to remain at the front of
technology So What are
We Supposed to get out of this? - these firms show
typical strategies of late- comer firms - to do this they had a assembly
learning period, then process development, and began to innovate - they utilized
foreign know how - balanced perfectly the rate of growth - ‘organizational
innovation’ - ‘because their learning achievements are cumulative and built upon
solid foundations, South Korean firms are well positioned to create new market
opportunities and to respond to the fast-changing pace of electronics
technology’ Pat’s Tid Bits - Hyundai 19 percent sales- Samsung 13 - Brad has a
Samsung microwave- 1/5 of US microwaves 92’ - Chaebol- the big business
groupings - its hard for Korea to be flexible given its culture - my interviews
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