1. How has Samsung's business model and strategies changed over time? Why did its top managers make these changes?
2. How is Samsung currently performing? What kinds of changes is it making to its multi business model?
In the 2000s, Samsung Electronics became the second-most profitable global technology company after Microsoft. Samsung had developed and built distinctive competencies in low cost manufacturing, research and development, and new production in new industries. Samsung pursued diversification to increase profitability by transferring and leveraging its distinctive competencies in product development and manufacturing. While successful, Samsung still was not in the same league as Sony and other competition. By changing strategy, Samsung had a goal to develop the research and engineering skills necessary to rapidly innovate leading-edge technologies in order to create products more advanced than the competitors. Within 10 years, Samsung was a leader and had made the development of new competencies in global marketing a part of its business model. In 2007, a leader in innovative global electronics, Samsung continued to pursue related diversification but in 2008 was forced to do so while simultaneously reducing its cost structure and increasing its technological edge. During this time, Samsung consolidated four divisions into two, products were combined into new divisions, and costs lowered to benefit from vertical integration. While Samsung Electronics operates with related diversification, the Samsung Corporation utilizes unrelated diversification.