In the recent disclosure of various performance data, Samsung's performance can be described as plummeting. Although it was once the pride of South Korea, it is now a great disgrace. Revenue plummeted, from one trough to another, with declines of more than 95% in the first two quarters. As a rare giant company in the world, Samsung's performance drop is unbelievable.
In such a situation, Samsung urgently needs to take steps to turn the situation around and regain its lost position and reputation. Therefore, it decided to make a change and seek cooperation with China, hoping to get China's support and help. After all, the Chinese market is huge and crucial for a company like Samsung.
Samsung's recent move to seek cooperation with China can be said to be a clear manifestation of the back-to-back grass. Faced with a severe revenue decline, Samsung felt it could no longer face such a dilemma alone. Samsung, which has been dubbed a "great shame" by South Korea, now hopes to get help from China to get back on its feet.
However, Samsung's predicament is mainly due to South Korea's policy shift in Yoon Suk-yeol. He was too biased towards the United States, joined the United States sanctions on chips, and took the initiative to give up China's huge market, which led to a collective explosion of many South Korean companies. Samsung's business in the Chinese market has also been significantly affected, and the mobile phone business has long since withdrawn from the Chinese market, although it still seems to be the world's largest mobile phone sales company, but in fact it is through a low-price strategy to achieve sales, and the profit is very low, 83% of the profit is owned by Apple. In addition, due to the embargo on China, Samsung's chip business has suffered huge losses, and tens of billions of dollars worth of chips have piled up. At the same time, China's local chip manufacturers are growing, such as Changxin Storage, Yangtze River Storage, GigaDevice, etc., which are fully occupying the field of memory chips. The LCD panel business was also a critical attack by Chinese BOE and other companies, with a loss of trillions of won, and finally had to withdraw from the Chinese market.
Realizing that following the U.S. sanctions against China will not bring good results for it, Samsung, in order to save itself, recently announced that it will invest 180 billion yuan in the Chinese city of Xi'an to build a memory chip factory. At the same time, Samsung and SK hynix are actively communicating with South Korea** to get the U.S. to grant them an indefinite waiver at their factories in China. This is a measure taken by Samsung to stop the bleeding and to re-enter the Chinese market.
However, with the rapid development of China's local technology manufacturers, Samsung is only now remembering to look back at the Chinese market, is it too late?South Korea's Yoon Suk-yeol and his team have made many mistakes in the wave of China's technological development. They have not only chosen to decouple from the United States, but also to try to decouple from China, which is neither powerful nor insulting to us, and the only thing that suffers will always be South Korea itself.
From Samsung's predicament, it can be seen that enterprises cannot only rely on the glory of the past and stagnate, let alone be anticlimactic. In the face of market changes and intensified competition, enterprises need to adjust their strategies in a timely manner and look for new opportunities. Samsung's past success should not allow it to rest on its laurels and make predictable adjustments to the external environment. Especially in the context of drastic changes in the international political situation, enterprises need to respond flexibly and find their own positioning and development direction.
In addition, Samsung's failure is a reminder that no business can rely solely on individual markets or individual partners. Diversified strategic layout and diversified partners can help enterprises reduce risks and meet various challenges.
Of course, there are also some potential opportunities in Samsung's predicament. As Samsung re-seeks to cooperate with China, this also brings some opportunities for Chinese companies to cooperate and grow. For Chinese technology companies, they can further enhance their technological strength and innovation capabilities through cooperation with Samsung.
To sum up, the challenges facing Samsung are multifaceted, but there are also some opportunities for growth. Rebranding and strengthening international cooperation are key to Samsung's ability to get out of this difficult situation. At the same time, other companies should also learn from Samsung's lessons and constantly adjust and improve to respond to the changing market environment. For China, South Korea's Samsung's plight reflects the wave of China's technological development, and it is more important to see its own opportunities and development space. We should demonstrate our scientific and technological strength and innovation capabilities on the international stage to help China's scientific and technological rise.