Friday, December 7, 2012

And ‘Sam sung’ a new song!

Shin brings useful capabilities to the job, but he will have to drive a change in SEIL’s positioning strategy

Thrift is a virtue on the fag end of the business cycle. So is multi-tasking, as that is the standard way of providing more value for the company. The leaders at Samsung seem to be leading from the front in that regard, if the recent leadership change in Samsung is anything to go by. After a stint of two years as President and CEO of Samsung South West Asia, H. B. Lee has moved on. Lee, who was a major in Business Administration from Seoul National University, had a prior experience of 31 years at Samsung Electronics. Under his leadership, the company was able to flex its muscles in the LCD segment and also captured the number one spot in the colour laser printer category (the company itself claimed a market share of 30.9% market share in India in September 2008). He has been replaced by Jung Soo Shin as the President and CEO of Samsung South West Asia Operations. However, unlike Lee, Shin would be multi-tasking, as he would also take in the responsibility of CEO and President for Samsung India Electronics Ltd. (Lee had no direct executive position in SEIL).

R. C. Chopra, senior adviser, CII, believes, “This is a proactive step and would enable SEIL to reap in the benefits of optimisation.” But one should not overlook the fact that India is a challenging market. Undeterred, Shin claims, “It will be my endeavor to leverage on the success achieved by my predecessors in this high potential Indian market and lead the Indian team to make Samsung a top electronics brand in the country.”

However, these are turbulent times and even Samsung Electronics Co. Limited is grappling to come out of it. It posted its first operating loss – a whopping $682 million for Q4, 2008. “The major reason for the loss was its memory chips unit, primarily due to massive falls in prices in October, November and December,” informed Kim Geesoo, Principal analyst, Goodmorning Shinhan Securities.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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