Samsung is the biggest smartphone manufacturer in the world today. Samsung was founded by Lee Byung-Chull in 1938. The journey of Samsung started as a grocery trading store in South Korea. From there on, it went to become the largest manufacturer of electronics in the world.
Samsung is the 15th biggest company in the world today. Samsung even has its own military now. The story of Samsung is nothing short of incredible. We will look at the amazing journey of Samsung right from the start and how it progressed to become the widely recognized brand that we all know and love today.
History of Samsung
Samsung was found in 1938 as a trading company based in Taegu, Korea. Samsung started its journey by selling fish, vegetables and noodles. The small grocery store had only 40 employees. The business was going well and Samsung soon started exporting their products to China.
Samsung kept growing as a company and Lee Byung-Chull moved to Seoul in 1947. After the outbreak of Korean war, he moved to Busan. He opened a sugar refinery in Busan. He also founded a clothing company in 1954.
This company was the largest woolen mill in all of Korea. By now, Samsung had expanded their business into many industries and they were doing well in all the industries. Diversification seemed to be the main growth strategy of Samsung at this point.
Samsung took heavy strides in the textile manufacturing industry during the 1970s. Samsung wanted to cover all the aspects of the production starting from the raw materials to the finished product. They also started entering new industries such as petroleum, chemicals, construction etc.
The future of Samsung seemed to be bright but nobody could expect the impact Samsung was going to have on the world when they entered the electronics industry.
Samsung Enters the Electronics Industry
Samsung entered the electronics industry in 1969. They had plans for a bunch of different products but their first products were black and white TVs.
Samsung also became the major producer of electronics like washing machines, microwaves and refrigerators. Samsung’s products were loved worldwide and they soon began to export their electronic products to other countries.
Samsung manufactured 5 million TVS in 1978. The next decade marked the rise of Samsung in the electronics industry. The sales of semiconductors were also going really well for Samsung during that time. Samsung started manufacturing Color TVs, Laptops, Air Conditioners, Tape Recorders etc.
Samsung Data Systems was established in 1985 and Samsung soon leader in information technology services. Samsung started manufacturing telephone boards, telephone faxes and eventually moved on to manufacture mobile phones.
Samsung expanded into other countries like Germany, Portugal, United States, United Kingdom and Japan. In 1987, Lee Byung-Chull passed away and his son took over the company.
Samsung kept expanding in the 1990s in the global electronics market. Samsung started facing tough times as there were a lot of corporate scandals around the company. The founder of the company faced bribery charges and patent-infringement lawsuits. Despite whatever was going on, innovation didn’t stop at Samsung.
Samsung continued to do well and it became one of the top five companies in the global electronics market. Samsung kept moving forward and they were ready to take on the world.
Samsung Joins the Mobile Phone Industry
Samsung manufactured its first handheld phone in 1988. It was called the SH-100 and it was the first mobile that was designed and manufactured in Korea. In 1992, Samsung differentiated itself from all other brands in the world by designing the world’s first 64 MB DRAM Memory. Samsung produced 10 million robots and automated their mobile phone production system.
Samsung turned into a company that had cutting-edge technology. In 1993, the 5th anniversary of the 2nd Foundation of Samsung was held. It was a great celebration for Samsung and they made it their vision to become the biggest company in the world. They introduced their new Logo and with this new vision, Samsung was ready for the future.
Samsung’s growth figures had doubled by 1993. Samsung changed its management in 1993. They realized that to survive in the new competitive environment, they must bring forth change and innovation. They switched their focus from the quality of the people to the quality of the product. Samsung was reborn as a new company with its main focus being on technology.
In 1997, the Asian economic crisis hit but Samsung was already prepared for that. They switched quickly from 57 to 40 subsidiaries and they were still profitable during the crisis. Samsung transformed itself completely into a digital company from 1998 to 2002.
The world changed rapidly during the 2000s. Due to the development of technology and the internet, markets were converging into a global market. Digitization made the opportunity for Samsung to go global and dominate the world.
In 2002, Samsung surpassed Sony in market share. In 2004, Samsung achieved its biggest profit in history. But the best for Samsung was yet to come. Samsung saw its best years when it started making smartphones.
Samsung’s Galaxy smartphones were an instant hit across the world. Samsung’s smartphones frequently topped annual lists of the best-selling smartphones in the world.
Samsung used Google’s Android platform to make amazing mobile phones. 25 million units of Samsung Galaxy S were sold in just nine months since it was launched. In 2010, Samsung launched Galaxy Tabs to compete with Apple’s new iPad. In 2011, Apple sued Samsung because the designs of the Samsung phones were awfully similar to that of Apple.
Despite the court cases, Samsung had ranked the number one tech company in the world ahead of Apple in 2013. Samsung generated revenues of $178.6 billion and profits of $20.6 billion.
Samsung created the prototype of the world’s first foldable smartphone in 2018. Samsung is now ranked the 15th biggest company in the world. Samsung is also the best mobile manufacturing company in the world. It is ranked as the 5th most innovative company in the world and it is also the world leader in TV sales.
Despite the setbacks and controversies that Samsung had faced, they kept moving forward. Samsung always had a clear vision of the future and they figured out what they need to do to stay ahead of the game.
The story of Samsung is a fascinating one indeed. Nobody would have thought that a company that started its journey as a grocery store would go on to become the largest phone manufacturing company in the world. Because of their consistency and innovation, Samsung has achieved the unthinkable and is among the top companies in the world today.
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