How was Samsung able to go from copycat brand to product leader?
In the world of consumer electronics, copycat brands are a dime a dozen. These are the brands consumers turn to if they don’t want to pay the price for the high-end market leaders. So if consumers want a top-tier television, they’ll probably look at one from Sony or LG. If they want something cheaper that’s probably not quite as good, they’ll look at brands such as Insignia, Dynex, or Vizio. But what about Samsung? Believe it or not, Samsung Electronics was a maker of cheap consumer electronic knock-offs from the time it started making calculators and black-and-white TVs in 1969 through the mid 1990s. Today, however, Samsung is the world’s largest television manufacturer and offers the most cuttingedge models around.
Putting the brand in context, Samsung Electronics is part of the world’s largest conglomerate, South Korea’s Samsung Group. Founded in 1938, the huge Samsung Group also owns the world’s second largest shipbuilder, a major global construction company, and the largest life insurance company in Korea. The conglomerate is so big that it accounts for 25 percent of all corporate profits in South Korea, well ahead of the number two Hyundai-Kia Automotive Group at 6.4 percent. Under the direction of Lee Kunhee, CEO and chairman, the third son of founder Lee Byung-Chull, Samsung Electronics has made major strides.