Electronics maker says will get through crisis on combined efforts with suppliers


Recovery does not seem to be in the cards for the global economy, but Samsung remained upbeat and pledged to continue working with its partners to come back with a vengeance when the markets pull through the current crisis.

“Short of slipping into a double-dip, the situation does not look good,” Samsung Electronics Vice Chairman and CEO Choi Gee-sung said at a two-day workshop Samsung hosted to promote mutual growth with its vendors and suppliers.

“But thanks to the efforts of everyone here, our products are at the top in terms of market shares,” Choi added.

Samsung televisions are touting a market share of 30 to 40 percent, with some of the high-end products such as 3-D televisions and smart TVs surging to as much as 60 percent of the market, he said.

Wireless products are ranked at the top of most European countries, with the stake rising to 50 percent in France and 40 percent in Germany, according to the Samsung Executive.

Samsung currently stands as the world’s top TV-maker and the second-largest handset maker.

“This is proof that even during an economic downturn, we can continue to create new opportunities when working together,” Choi said. “If we work to further raise our market share and brand name, sales will automatically go up when the economy improves.

Despite being at the top, Samsung Electronics Chairman Lee Kun-hee has been recently raising concerns about harsh business conditions, emphasizing that Samsung needs to take up new ventures to secure its place in the world.

Up to 180 representatives of the association of Samsung Electronics suppliers and around 50 Samsung executives including Choi attended the workshop.

Local conglomerates have recently been pushing stronger than ever to assist their smaller rivals in the government’s strong drive to level out the playing field.

Funds to help with R&D and extending cash payments are all part of the efforts corporate Korea has been showing to uphold the initiative.

“Even though mutual growth and co-existence is a part of the chairman’s business philosophy, we have somewhat involuntarily adopted this initiative. However, through this process, we have had a chance to look back at ourselves and create new momentum.”

The vendors raised concerns about the heating competition in the global IT industry, where Chinese companies have been rapidly making headway.

“We need to create our own momentum to recover our competitive edge,” said Pahk Heui-jae, CEO of SNU Precision and head of the association of Samsung suppliers.

He stressed that while it was significant for each individual company to upgrade their core competence, Samsung continues to play a huge role in maintaining their lead in global markets as so many vendors rely on it.

By Kim Ji-hyun  (jemmie@heraldcorp.com)