Samsung Electronics Competitors: Due to hit newsstands on Friday, March 29, the new issue of Bloomberg Businessweek takes a close look at Samsung. In its cover story, “Samsung’s Secret,” writer Sam Grobart had the opportunity to get a behind the scenes look at the largest electronics company in the world.
When you have finally made your way through the article, you will wonder how Samsung flies under the radar, for the most part, in the United States. Sure, people are familiar with the company’s lineup of smartphones and tablets, but they don’t realize that Samsung’s electronics group (not counting other divisions) pulled in more than $140 billion in revenue last year.
For a better idea of why Samsung has become such a dominant force in South Korea, as well as other parts of the world, take a look at this quote from the author:
“A Seoul resident may have been born at the Samsung Medical Center and brought home to an apartment complex built by Samsung’s construction division (which also built the Petronas Twin Towers and the Burj Khalifa). Her crib may have come from overseas, which means it could have been aboard a cargo ship built by Samsung Heavy Industries. When she gets older, she’ll probably see an ad for Samsung Life Insurance that was created by Cheil Worldwide, a Samsung-owned ad agency, while wearing clothes made by Bean Pole, a brand of Samsung’s textile division. When relatives come to visit, they can stay at The Shilla hotel or shop at The Shilla Duty Free, which are also owned by Samsung.”
Simply put, Samsung is a way of life in this part of the world. While many feel that Apple Inc. (NASDAQ:AAPL) is top dog the world over, this clearly isn’t the case. In South Korea, for example, Samsung is part of everyday life for people of all ages. There is no escaping this fact.
Despite the fact that Samsung, Apple Inc. (NASDAQ:AAPL), and Research In Motion Ltd (NASDAQ:BBRY) are competing in the same arena, these companies don’t have the same approach.
For example, Apple focuses on fewer models that are diligently designed down to every last deal. Samsung, on the other hand, moves faster. How else could you explain the Galaxy S4 being released nine months after the GS3?
Here is one final quote from the piece, explaining how Samsung will continue to compete with Apple:
“Samsung is making efforts to strengthen its position by opening a software development center in Silicon Valley. It may never have the kind of operating system control that Apple has. Samsung does, however, use its production depth and flexibility in ways that are arguably as powerful. It makes the processors, memory chips, and cameras that are in not only their own smartphones but also in many others—including the microprocessor in the iPhone 5.”
How about that? Soon enough, Samsung will be developing software on Apple’s home turf.
What do you think about this piece? Do you now have a different outlook on Samsung? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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