Samsung remains at the forefront of consumer technology trends. Their research-to-manufacturing model allows them to swiftly seize any new trend and outshout their competitors.
But can the company sustain its leadership position on mobile phones? Nokia and BlackBerry stand as examples of companies which faltered after reaching the peak, yet continue to remain iconic brands in consumers’ minds.
Lee Byung-Chull
Samsung is an undisputed powerhouse in technology. Few are aware that its roots date back to 1938 when Lee Byung-chul opened up his trading company – an event which would later lead to an epiphany and help transform Samsung into one of the leading tech firms of today.
Lee Byung-chul’s story is an inspiring testament to the power of vision and ambition, as well as an illustration of how an organization can become an industry leader through innovation and a dedication to excellence. Although his life was often fraught with hardships and setbacks, Lee always managed to rise above his situation and find success in spite of it all.
Byung-chul recognized that South Korea offered enormous business potential during the early 1950s as it began rebuilding after war, and established Cheil Jedang Corporation to diversify his business portfolio. Soon thereafter, this venture engaged in food processing, textiles production, insurance policies, construction work, and finally electronics in late 60s.
Lee Byung-chul’s entry into electronics was successful; however, initially his company faced financial struggles as a result of economic conditions at that time. Nonetheless, Lee never gave up his goal of turning Samsung into an all-encompassing market leader in every sector of their endeavors.
Since Byung-chul died in 1987, his son Lee Kun-hee has taken over as chairman of Samsung Electronics and transformed it from an insular manufacturing conglomerate into an international technological powerhouse. Although rarely leaving the confines of Samsung Electronics’ compound grounds for business meetings or trips outside, Lee Kun-hee was famed for his pronouncements on business matters which were broadcast throughout the nation.
Lee was widely credited with fueling South Korea’s rapid industrialization from war-ravaged ruin to becoming the world’s 12th largest economy. He became famous for his relentless pursuit of quality; at one time even destroying 150,000 defective phones on the factory floor as a signal to his employees.
Lee Kun Hee
Lee Kun Hee, the South Korean industrialist responsible for turning Samsung from a second-tier maker of televisions and stereo equipment into one of the world’s leading producers of smartphones and tablets, lived a reclusive life despite making significant strides as president of his nation’s flagship corporation. However, his occasional pronouncements regarding business were heard all throughout Korea: for example “If you want to win, work harder” being written as one such directive by him in an email addressed to employees.
Lee took over Samsung as chairman in 1987 when it was already an expansive conglomerate, engaged in activities from fish exporting and fruit sales to construction. Under his guidance, however, Samsung became one of the world’s premier memory chip and smartphone producers; thus leading up to Lee’s death due to heart failure at age 78 in 2014.
Lee was famous for his direct and decisive approach, with an emphasis on big-picture strategies and his focus on executive responsibilities rather than micromanagement of daily management tasks. This allowed him to pursue risky investments in a rapidly evolving technology industry and drive greater vertical integration initiatives (such as investing in chip factories during 2008’s global financial crisis) while demanding that Samsung products outshone competitors.
His dedication to quality was legendary, and he gained notoriety for harshly punishing those who failed to meet his stringent standards. For example, when one line of smartphones tested 11.5% defective, he ordered all 150,000 defective phones be destroyed on factory floors or bulldozed in front of workers as an effective statement that this company would not tolerate such failures in quality control.
Lee also worked to bring in more women and minorities while discouraging bureaucratic practices. But his greatest legacy has been the company’s culture of innovation that has produced an endless stream of new products while adapting quickly to shifting market conditions.
Samsung has taken an approach that has allowed them to withstand competition from Apple and other rivals, and to try to emulate some of the start-up culture that propelled Silicon Valley. At its headquarters campus in Suwon known as Digital City, employees are given full reign to experiment with cutting edge technologies that could lead to revolutionary gadgets in future years.
Lee Jae Yong
As Samsung expanded into an international tech giant, its family-run operation continued to face difficulties. Since the 21st century, lawsuits from competing electronics makers and the coronavirus pandemic prompted by shortages in semiconductor production have presented it with difficulties; additionally, Samsung was forced to withdraw the Galaxy Note 7 smartphone due to battery issues; yet in spite of all these setbacks and controversy it still managed to thrive and prosper.
South Korean governments have shown themselves willing to bend over backwards for Samsung, its fortunes so deeply interwoven into its economy that they simply can’t afford not to grant its wishes, especially in times when its business struggles.
Not everyone in South Korea is pleased with its chaebol system, however. Some critics allege that large corporations stifle small businesses while making corrupt deals with government officials without facing enough repercussions; yet for others it serves a useful function in turning an agrarian economy into an export powerhouse.
Lee Jae Yong is one of the richest individuals in the world; he inherited his father’s vast empire and currently serves as executive chairman of Samsung Electronics. However, Lee Jae Yong served 18 months in prison on charges of bribery and embezzlement for offering millions of dollars in bribes to former president Park Geun-hye and her confidantes to facilitate a 2015 merger between two Samsung affiliates — Samsung C&T and Cheil Industries — that would consolidate his power within Samsung C&T and Cheil Industries– which would consolidate his power within Samsung C&T and consolidate his power within Samsung C&T/C&T/Cheil Industries/Samsung C&T/Cheil Industries– which would consolidate his power within Samsung C&T/Cheil Industries– that would consolidate his power within Samsung C&T/Cheil Industries– that eventually resulted in both charges against them: both charges being brought upon Samsung C&T/Cheil Industries/Cheil Industries/Cheil Industries which would consolidate his power within Samsung Electronics/Bul.
After his conviction, he received a presidential pardon and resumed his management duties. Since then he has participated in over 12 acquisitions or ventures – more than double those undertaken by his predecessor – as well as creating new partnerships with companies like Apple, Microsoft, and Google.
Critics argue that Lee has not done enough to transform Samsung into an innovative and competitive company in an increasingly weak global market. Samsung must go beyond simply producing premium smartphones to compete with Apple, which has taken market share with their iPhone 7 and forthcoming Apple Watch Series 4 offering. Jay Yong may or may not be up to this task – only time will tell!
Lee Jae Young
Lee Jae-yong (known to Westerners as Jay Y.) is South Korea’s legendary tech chaebol. Though not responsible for running any single business within Samsung Electronics, Lee holds incredible influence across its entirety. Speaking fluent Japanese and English fluency and traveling extensively are hallmarks of his international upbringing; yet deeply rooted within Korean heritage; in short he represents everything Samsung wants but cannot yet.
Lee began his journey when he was just a teenager, when his father sent him on an educational tour to Japan and America in order to study how other companies expanded globally. This education continued at his family’s business offices where he helped negotiate deals with some of his father’s most valuable clients – something which may have prepared him for leading Samsung later on in his life.
At the same time, Lee strived to expand Samsung globally; he initiated a program where top middle managers took one-year sabbaticals around the globe in order to immerse themselves in various cultures and come back with fresh insights. Furthermore, Lee hired non-Koreans into key positions on account of their fresh perspectives bringing added value.
Lee took over leadership of Samsung at a critical juncture. Despite its overwhelming success with smartphones and other electronics products, there were significant challenges requiring swift action to address.
The primary source of concern was a semiconductor shortage that threatened to put the entire company at risk, while secondary concerns included slowdowns in high-end television and smartphone demand that might have lasting repercussions.
As a response, Samsung increased investment in chip production and other growth areas; however, this proved costly, ultimately driving down earnings and leading to massive layoffs within their semiconductor division in late 2023.
At the same time, Lee undertook an extensive initiative to streamline his company by selling off assets such as disk drives, defense and petrochemicals. But he also initiated two publically traded pieces of his family business that merged together in 2015 in what many saw as an attempt at consolidating control after his father’s death; such merger also caused controversy when President Park pressured a major shareholder of one of these merged companies – National Pension Service – into supporting it.
