|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
The Happy Warrior
Joined: 10 Feb 2010
|
 Posted: Mon Apr 05, 2010 12:40 am Post subject: Triumph of the Chaebol? |
 |
|
Return of the Overlord (Background)
| Quote: |
Think of anything with a screen, from a few centimetres square on a mobile phone, to a laptop, a wide liquid-crystal display or a giant 3D television, and Samsung Electronics will be one of the top two firms in the world making it�or at least the memory chips inside it (see chart). The company�s global market shares are staggering: more than 40% of the flash memory used in sophisticated electronics like the Apple iPhone, almost one in five of the world�s mobile phones and one in six of its television sets. It even makes screens for Sony�s TVs.
Having invested aggressively in new products in 2008, Samsung Electronics sailed through the global financial crisis, almost doubling its operating profit in 2009. This year analysts expect it to generate record profits of over $10 billion. Sales are forecast to be about $130 billion, which is likely to confirm its lead over America�s Hewlett-Packard as the world�s biggest technology company by revenue. Not to be outdone, other parts of the Samsung group have notched up successes. The construction division recently completed the tallest building in the world in Dubai and Samsung Heavy Industries is flush with shipbuilding orders.
Japan looks on aghast as the chaebol catch up with more of its large firms. �Of all their competitors on the global stage, the Japanese fear the South Koreans most,� writes Mark Anderson, author of Strategic News Service, a technology newsletter. Some Japanese industrialists acknowledge this publicly. �Korea is much more full of vitality than Japan,� Osama Suzuki, head of Suzuki Motor, lamented |
The Chaebol Conundrum
| Quote: |
First, they face competition in new forms for which their hierarchical management structures and complicated, dynastic ownership are ill suited. Apple�s iPhone and the ubiquitous BlackBerry crept up on Samsung Electronics, exposing its shortcoming in smart-phones.
Second, the size and strength of the chaebol risk stifling entrepreneurialism elsewhere. By and large, their local suppliers are the only medium-sized South Korean companies to have thrived in recent years. Some young businesses such as internet search and gaming have done well, but these are in fields where the chaebol cannot yet be bothered to tread. If they ever do, they may smother rather than nurture independent talent. |
But Samsung, the three-pronged head of the Chaebol, is taking its place as one of the most powerful companies in the world.
| Quote: |
Samsung�s profits this year are forecast at a record $10 billion, and its sales at $130 billion, which would confirm its lead over Hewlett-Packard as the world�s biggest technology company by revenue. |
|
|
| Back to top |
|
 |
visitorq
Joined: 11 Jan 2008
|
| Posted: Mon Apr 05, 2010 5:36 am Post subject: |
|
|
Don't believe the hype. Samsung is also one of the most corrupt conglomerates ever and is not much of a pioneer in anything. Nor does it pose any sort of "threat" to Japanese firms, whose combined electronics sector (including Sony, Panasonic, Toshiba, Hitachi, Sanyo, Fujitsu, etc. etc.) completely dwarfs that of Korea. Basically the best technology companies are all still American, European and Japanese. Korea is quite good, but with few exceptions, still not the best.
Chaebols are a direct copy of Japanese zaibatsu (Mitsui, Sumitomo, Mitsubishi etc), the main difference being that none of the zaibatsu are still owned by their original families (whereas in Korea they are). This is because in Japan they were broken up after WWII and reformed as keiretsu of the same names, but comprising de facto autonomous companies (though still mainly financed by their own banks). Taken as a whole, the combined firms under the Mitsubishi name are worth several times more than the Samsung brand. And that's just one keiretsu (they're basically all worth more than Samsung or Hyundai). Even Toyota alone is worth more.
The reason Samsung seems so big is that it's under one vertical control structure (still run by the same family) and dominates so much of Korea's economy. Whether or not this is a good thing or not is up for debate. |
|
| Back to top |
|
|
pkang0202
Joined: 09 Mar 2007
|
| Posted: Mon Apr 05, 2010 8:39 pm Post subject: |
|
|
Don't believe the negative hype either.
Samsung is leading the consumer electronics because Japanese companies sat on their butts, complacent in thinking no one can challenge them.
Samsung's entry into the Semiconductor industry is quite remarkable. |
|
| Back to top |
|
|
visitorq
Joined: 11 Jan 2008
|
| Posted: Mon Apr 05, 2010 9:21 pm Post subject: |
|
|
| pkang0202 wrote: |
Don't believe the negative hype either.
Samsung is leading the consumer electronics because Japanese companies sat on their butts, complacent in thinking no one can challenge them.
Samsung's entry into the Semiconductor industry is quite remarkable. |
Samsung is not 'leading in consumer electronics'. It is just a single brand and most revenue comes from making cheap components for other brands. The Americans, Japanese and Europeans still make all the best stuff and lead in research and development.
Samsung's entry into the semiconductor industry is somewhat impressive, but isn't really that remarkable. Your claim that the Japanese 'sat on their butts' is silly- they just dominated to such a degree that it was inevitable that they would lose ground to outside competitors over time (esp. the case for Sony). Samsung just makes good quality semiconductors for cheaper and reliably, but the Japanese (or Americans for that matter) could easily make the same products, just not as profitably (since Korea is cheaper). Samsung plays its role well and it works out alright for everyone. Overall though, the Japanese still dominate the consumer electronics industry and this is not likely to change anytime soon. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
