Samsung is a giant enterprise in South Korea, and its business involves many aspects, such as the well-known mobile phones, screens, memory chips, wafer manufacturing, etc., focusing on leading in many fields and also having a certain influence in the world.
However, Samsung's life has not been easy in the past two years, especially since the beginning of this year, the profit has been **, and the first two quarters ** have been above 95%. So, Samsung began to make changes to reverse the current tragic situation!So, what exactly has Samsung changed?Will they be able to get Samsung back on its feet?
Samsung has always been a leader in the chip industry, but in recent years, due to factors such as declining market demand, fierce competition, and US sanctions, Samsung's chip business has suffered a heavy blow. To address these challenges, Samsung has increased its R&D investment to drive technological innovation. It is reported that Samsung's R&D expenses in 2023 will reach 226 trillion won, higher than Intel, TSMC and SMIC.
Samsung has also strengthened its technical cooperation with other companies, and has signed a number of patent cross-licensing agreements, production technology licensing agreements, patent licensing agreements, etc.
Samsung has also achieved a breakthrough in chip manufacturing technology, taking the lead in launching chip products based on 3nm process technology, catching up with TSMC. Samsung has also applied chip technology to various terminal products such as smartphones, tablets, smart speakers, and smart TVs, improving the performance and competitiveness of products.
Samsung's business is in many areas, but not every one has a competitive advantage. In order to improve efficiency and profitability, Samsung has restructured its business to focus on core areas and divest some non-core areas.
For example, Samsung has exited these markets by giving business such as credit cards, printers, medical devices, etc. to other companies. Samsung has also gradually reduced the production capacity of LCD panels and turned to more advanced display technologies such as QLED and OLED.
Samsung has also carried out internal integration, adjusted the division of labor and business composition of departments, integrated effective resources, strengthened the internal connection between different units, improved management efficiency, and enhanced business vitality.
Samsung's business is spread all over the world, but different regions and markets have different needs and characteristics. In order to adapt to market changes, Samsung has optimized its global layout and adjusted the structure of the number of subsidiaries, the number of employees and the number of patents.
From 2015 to 2021, the number of Samsung subsidiaries decreased from 159 to 228, with a decrease in the number of foreign subsidiaries and an increase in the number of Korean subsidiaries. Samsung's number of employees has also increased from 32070,000 to 26670,000 people, including a decrease in the number of employees in the production area and an increase in the number of employees in the areas of R&D and design, sales and service.
Samsung's number of patents has also increased from 21640,000 pieces increased to 23320,000 cases, of which the number of PCT patent applications has increased, ranking second in the world. Samsung's changes are undoubtedly to cope with the current predicament and seek new development opportunities.
Samsung is a company with a long history and brilliant achievements, and it has a position and influence in the global market that cannot be ignored. However, with the changes in the market environment and the intensification of competition, Samsung is also facing unprecedented challenges and crises. Samsung's profits**, foreign media said that it was taught a lesson by reality, which also reflects some of Samsung's strategic mistakes and deficiencies in the past.
Realizing this, Samsung began to make a series of changes, including increasing R&D investment, adjusting its business structure, and optimizing its global layout, in order to adapt to market changes, improve its technological innovation capabilities, focus on core areas, reshape its brand image, win back consumer trust, and regain its glory.
However, whether these changes will make Samsung's successful transformation remains to be tested by time and the market. We also hope that Samsung can overcome the difficulties and continue to bring us more quality products and services.