The history of Samsung company: beat the odds
When it comes to Samsung, Android phones, smart TVs and other household appliances of the corporation that we use every day come to mind.
However, the history of Samsung keeps a lot of unexpected details. For example, not everyone knows that initially the company was not engaged in electronics. The company entered the industrial path only 30 years after its foundation.
Initial stages of formation of the future transnational corporation
In the 30s of XX century, the future creator of Samsung Korean Lee Byung-chul decided to produce rice flour. He sold it in a small shop in his hometown of Daegu. In those days, opening his own business in Korea was accompanied by difficulties, but despite this, Chul was able to develop business. In 1938 there was a trademark of Samsung Trading Company. The basis of the company was a company where 40 people worked. It was involved in the supply and sale of products.
Then the Second world war came, which played into Samsung hand. After the liberation of Korea from Japan by the US army, the company opened a factory where beer and rice vodka were produced. These goods were in demand among the military.
The profitable period was short — in 1950, the Civil war began in Korea. As a result of the riots, the company’s warehouses were looted, and Chul lost not only business, but also a place to live — his house burned down as a result of conflicts.
The founder of Samsung was saved by his foresight. Even at the initial stage of the war, he managed to transfer Samsung revenue into cash, which he hid in the storage under his house. As a result, the entrepreneur opened a textile factory, an insurance company and a sugar factory for the funds that survived the fire.
Due to the presence in different markets of the capital Lee Byung-chul was growing up. Over time, he became one of the richest people in his country. But then again it failed. As a result of a military coup in South Korea in the early 60’s, Lee Ben was put in prison because of ties with the former President. Korean business collapsed again.
And again fortune favoured Chul. The history of Samsung continued when the new government of the Republic of Korea tempered justice with mercy, deciding to rebuild the country’s economy with the help of those who do it best — experienced businessmen. They were able to develop thanks to government orders and preferential working conditions. As a result, in South Korea now known companies Hyundai, LG, Daewoo were formed. Samsung was also revived, and Its leader was again got out of jail Lee Byung-chul.
The newly established corporations had their own areas of work. Samsung was responsible for electronics. Thus, in the mid-60s, the company began to acquire a familiar look.
The Golden age and transformation into an industry giant
The 70s were the heyday of the corporation. In 1972, it produced in Korea the first black and white TVs, and a year later opened a factory for the production of household appliances: refrigerators, washing machines, air conditioners.
The end of the decade was marked by the creation of the first color TV and video recorder. The company also launched a representative office in the United States and in 1977 the level of export of Samsung equipment has reached more than $100 000 000.
After a short loss-making period caused by the economic crisis in Korea, the company returned to its leading position in the mid-1980s. It consolidated success with the release of a personal computer, innovative chips and a CD player. International expansion continued with the opening of the plant in the US and sales offices in Europe and Asia.
The end of XX century was marked by great financial success of Samsung. Under the leadership of the younger son of Lee Byung-chul, Lee Kun-hee, the company in 1995 reached a turnover of $10 billion and became recognizable around the world thanks to the new logo, which has since almost never changed.
The history of Samsung in our time
Samsung in the XXI century is a giant corporation, whose influence has gone far beyond the production of only electronic goods. The company is engaged in the chemical industry, heavy industry, financial sector, design and construction of offices, factories and other facilities. In particular, Samsung Engineering designed the tallest building in the world — Burj Khalifa.
Nevertheless, special attention should be paid to the company’s success in the mobile phone market. When in 2008 Apple introduced the first iPhone and eventually became the leader of sales, Samsung managed to compete with Americans. After 10 years, the South Korean company is the leader in this field. At the end of 2017, Samsung mobile phone market share was 20.1%, while Apple received 14.1%.