Hi, this is Wayne again with a topic “How Samsung went from Groceries to Greatness.”.
You might be surprised to find out that Samsung wasn’t always selling smartphones, TVs and fridges, but in fact started off selling dried fish, noodles and groceries, and there is a lot of the story, but today I’m gon na break it down into these seven things. Samsung did seven pivot points that took Samsung from selling grapes to selling Galaxy S nines, let’s rewind 80 years 1938. This was the very beginning. There was a man named Lee who was part of a wealthy family and had a bit of money, and he found it. Samsung at the time, it was just a trading company dealing in all manner of consumables and it was a huge hit.
As the company started to grow. Lee started a sugar refinery moved in to insurance and just generally started to do a bit of everything, and this leads us to our first turning point when Samsung finally branched out into electronics, they had an advantage over other new electronics brands in that they had their Income from all these other sources, which was leveraged to fund their ventures, so that’s one thing: they started creating TVs appliances, a little bit more, the Samsung you know today, but Lee realized something he had the insight in a time when it wasn’t so clear that electronics Was gon na be huge for something in the future, as it was? Something was importing many of its parts from Japan, which means that there is still another company taking a cut on each component, not ideal. So out of his own pocket. Lee bought a majority stake in the company Korea semiconductor by owning this majority stake Lee had control over the company’s decisions and said this was soon renamed to Samsung semiconductor and started, making all manner of components just for Samsung, and this was a huge gamble at the Time, everyone was telling him leave, don’t do it.
Don’T spend this money it’s too risky, but in hindsight, looking back from now we can see it handsomely. Paid off. Samsung semiconductor has only grown since and has allowed the company to even take over Intel as a chip maker for smart devices. In fact, Samsung is now the largest chip maker in the world, and it’s all thanks to that.
Seemingly unprofitable gamble made back in the 1960s. So Samsung continued to expand, but they had one looming issue: quality to establish brands like Sony, something it was a very tough sell for customers, especially ones abroad. This wasn’t helped when Lee eventually died of lung cancer in 1987, fun fact, Lee number one was replaced by a second man named Lee, who we’re gon na call Lee number two for now – and this leads us into the third point, because Lee number two wasn’t gon Na stand for low quality product in 1993, Lee too famously held a meeting in Germany, where he gathered 200 Samsung executives and spelled out his entire vision to them. It took three days. His famous words were change everything, but your wife and kids. Lee too, was so disgusted by the quality of products that were coming out of Samsung in the 1990s that in a fit of anger, he ordered them all to be destroyed.
Something like fifty million dollars worth of hardware was burned on a single day in 1995, and this was kind of like a message to the rest of the company. This was him putting his foot down and saying this is not. Okay and Samsung Electronics emerged from those ashes a very different company. The transition from cheap mass-produced products to being at the cutting edge of technology was a long, difficult Road, but a lot of people would say this is where it started. Samsung was an early adopter off the cell phone before it was considered a necessity before every man, woman and two-year-old had one and when the smartphone arrived, Samsung run with the opportunity, even as early as 2010, along with their flagship Samsung Galaxy S. The company made over 50 different models of phone, and each of these were specifically targeted to a certain niche.
It could be people who wanted a super cheap phone people who wanted a physical keyboard or people who needed a good camera so up against a company like Apple, while Samsung, perhaps lost in refinement. They gained back in sheer numbers, although their profits per phone weren’t close to his high. They were slowly but surely building a reputation for quality, but even at this point, samsung wasn’t destined to success.
There were a few more key decisions that had to be made. The next big thing this was a powerful move by Samsung the carefully planned marketing stunt that brought them right into center stage. It was essentially a massive stab at Apple, pointing at the iPhone 4s and its small display unreliable battery and lack of 4G connectivity, and the timing was clever.
The Samsung Galaxy S, the company had finally made a phone that could stand toe-to-toe with the iPhone answer. This marketing campaign should have created the idea in consumers minds that Samsung’s phones were a viable alternative and the seventh thing, which really cemented Samsung’s position as a true creator of modern flagships, was its early. Adoption of large displays. With the Galaxy Note, Samsung was the first to fully embrace large screen smartphones. Some people laughed them off, claiming that to the 5.3 inch display was excessive, but in hindsight it’s clear that Samsung saw a gap that others didn’t by then consecutively delivering with their notes lineup.
They became one of the go-to devices if you wanted a big screen phone all right guys. I really hope you enjoyed the video and, as I said at the beginning, there is a lot more to Samsung story than we could possibly cover in a 6 7. 8 minute video. I don’t know how long this is gon na turn out to be, but nonetheless I hope you enjoyed it and I hope you found it useful with that being said, my name is Aaron.
This is mr. he’s the boss and I’ll catch. You guys next time. .