Company- Samsung Electronics Essay Example | Topics and Well Written Essays - 2500 words

Company- Samsung Electronics - Essay Example 2. BRIEF HISTORY Samsung Electronics Co., Ltd. was established in 1969. It was one of the top divisions of the Samsung Group which was founded by Byung-Chull Lee. The name Samsung meant in Korea as "three stars." His first line of business was sugar refinery. Then few years later, Lee entered the manufacturing business. He also built other lines of businesses in 1960s such as insurance, broadcasting, securities and department stores. On late 1960s, Samsung Electronics began its operations with the help of some American, European, and Japanese manufacturers. As the company entered into the world of electronics, they made a huge investment to train their employees about the technologies used at the same time partnered with several overseas companies to make it possible (Funding Universe, n.d.). The 1970s period marked the beginning of Samsung's competitive vision to be the world's top contender in manufacturing electronics. The company's pride was the development of various electronics items which include semiconductors, computers, telecommunications hardware and finished consumer electronics products (Samsungn.d.a). In 1980s, the company expanded their business in the form of exports and partnering with other big companies and other suppliers of technology from other countries. They made huge sales and profits from export. In 1990s, the company experienced crisis in which it rooted from the crisis that the Korean government went through during the 1997 International Monetary Fund crisis. However, the company made a full stand during the crisis by adopting a series of restructuring as a form of rescue operation. The company was successful on their risky move. In the new millenium, the company spread even more their vision as they proclaimed to the world their plan of becoming the world's top producer and exporter of digital electronics. 3. SCOPE OF ITS INTERNATIONAL MARKETING 3.1 GOVERNMENT VS. INDUSTRY â€Å"Industrial transformation is the process in which an industry changes its production technology, market distribution, product scope, and location† (Shin & Ho, 1997). Government policies are among the factors that affect the transformation (Shin & Ho, 1997). On January 28, 1969, the Electronics Industry Promotion Law was enacted by the Korean government. This law was to promote major electronics export industry by developing new technology products and increase sales activities outside the country (Amsden, 1989). On that year also, development and training with tax incentives, low-cost loans and direct subsidies promotion were provided by the Ministry of Trade and Industry (MTI). Samsung, as one of the chaebols (domestic conglomerates), was one of the companies who received these benefits from the government (Dedrick & Kraemer, 1998). 3.2 DEVELOPMENTS WITH JOINT VENTURES AND COLLABORATIONS 3.2.1 SAMSUNG’S ENTRY TO ELECTRONICS INDUSTRY - 1970s. After the SEC was established, the company was able to form a joint venture agre ement with foreign companies. First was Sanyo and Sumitomo Trading with 40% and 10% respectively as well as with NEC and Sumitomo Trading. The Samsung-NEC employees went to training in Japan for couple of months to learn the simple products assembly and with the technical assistance agreement; those employees will undergo training annually by NEC's technical experts. Futhermore, with the emergence of Samsung-Sanyo Parts in March 1973, the company was able to produce television parts with tuners, deflection yokes, transformers and