When you hear this name “ Samsung”, I guess most of the people think about cell phones and that too typically the Samsung Galaxy. Even right now, you must be reading this article on Samsung Galaxy. They have been selling hundreds of millions of those cell phones more than any other company. But little do you know that Samsung is not just about the smartphones or should I say, Samsung is more than just you know.
Samsung electronics has been consistently ranked by the Fortune as the one of the largest companies in the world. Their sales have been more than $200 billion each year. You can see Samsung LEDs in most of the houses in your neighborhood or in your house as well. They’re from South Korea and for their entire country, their GDP is like about $1.6 trillion meaning that this only company accounts an eighth of that. Not only South Korea is ahead in electronics field but their dramas and songs (K-pop) always remain popular. This country is ahead of many country in so many areas. Samsung electronics is just a small part of whole Samsung group. After combining all, they hold responsible for atmost 20% of Korea’s GDP. Samsung started in the year 1938 before the electronics branch started. It was all started by Lee Byung- Chul. He was 28 years old back then and their official logo featured three stars which actually depicted the longevity of the business. The Korean war made things more
difficult but when it ended in 1953, he took advantage of the opportunity and expanded into all of these other industries. First, it was commodities when he built a sugar refinery that happened to be the first of its kind that was
built in the country after the war. Following that was textiles when he opened the largest woolen mill in the country, after that it was insurance a tv station and a department store for these first 30 years. They seemed to be involved in everything
except electronics. They were already generating over 100 million dollars in annual revenue before what became Samsung electronics company. Samsung became so successful so fast because of Chaebol that is a Korean word that is defined as a family controlled industrial conglomerate in South Korea.
Samsung fits that definition perfectly because they are the biggest in their kind. Following the Korean war, the country’s economy was in some trouble that they weren’t producing much and they definitely weren’t exporting much then in 1963. There was this new president named Park Chung-hee who was very set on expanding this economy.
His main method of doing it was to try to centralize everything. He essentially wanted to take the bigger businesses and help make them bigger. The idea is simple enough if the companies grow so does their economy.
Now Samsung already being one of these larger businesses was tremendously helped by this intervention. The Korean government would help Samsung, they would be providing them loans under favourable terms and by giving them special tax breaks.
The market pushed the consumers towards Samsung.
Later in that decade, when they started making semiconductors, the Korean government said that they would only allow International companies to enter their market only if they handed over some of their technology secrets to Samsung.
The methods were successful in growing Samsung and the Korean economy in general but it may not have been the best way to do it.
The country is now very reliant on one company. Not only in electronics, Samsung has produced washing machines, vehicles and has sold life insurance as well.
Samsung is not just about phones but it holds big parts in different areas !!