Everyone has heard of Samsung, this Korea-based conglomerate is known for manufacturing a lot of things. Whether we’re talking about microwaves, TV, smartwatches, smartphones or something else, Samsung probably makes it. This corporation even makes displays and processors for mobile devices, laptops as well… I could go on forever. Most of you probably know Samsung’s mobile phones, tablets and wearables best though. I bet not many of you know about the leadership of Samsung though, or Lee Kun-hee, the boss of Samsung.
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Well, Lee Kun-hee, who is 72, has suffered a heart attack and is in the hospital. Very few people expect for him to be back like he was in 2010 when he avoided the prison sentence for embezzlement and tax evasion. This means that his son, Lee Jae-yong, will probably take control of the company. Lee Jae-yong is 46 years old and he’s been a part of Samsung since 2001, ten years later he was named vice-chairman of this Korean company. “He is unproven as a manager” said his business-school professor, Chang Sea-jin. People call Lee Jae-yong approachable and unassuming, in other words, he’s totally different than his father who is known for an imperial management style. According to the report, Lee Kun-hee’s son will take over the company while his two daughters will handle 2 smaller businesses.
Many Samsung groups require restructuring, which you can read more about at the source. We’re here to talk a bit about Samsung Electronics which has the most customers. This section of Samsung came from nowhere and grabbed on third of the market for smartphone back in 2012 thanks to Android OS and company’s ability to take advantage of the OS and manufacture their own devices. Samsung is also well-known for its marketing capabilities, which definitely played a big part in Samsung Electronics’ success. Samsung’s market share has dropped down to 25% according to IDC, which is a market-research firm. Which indicates caution from Samsung and does require some restructuring. Samsung’s Galaxy S5 offering wasn’t received all too well even though sales number were rather good, but many consumers required Samsung to change their approach a bit and offer something different. Most of those complaints had something to do with the materials Samsung uses to build their devices, plastic (polycarbonate). Since then Samsung has released a Galaxy Alpha handset which sports metallic build. After introducing Galaxy Alpha Samsung showcased its new, long-awaited, Galaxy Note 4 phablet which sports a similar metallic construction. It is quite obvious that Samsung is changing things up and it will be interesting to see in which direction will the company go in the next few years.
There is, of course, no reason to panic for Samsung, they’re still the biggest smartphone manufacturer in the world basically, but they have to be careful. Competition is vast and there are many companies which manufacture rather solid low-cost devices nowadays. Samsung has been playing it safe for too long and it seems their market share finally took a hit because of it. This is an exciting market and I can’t wait to see how will things go for Samsung in the future and how will Lee Kun-hee’s son handle things, if he takes over of course.