Samsung to restructure Japanese operations.- the Korea Times
Samsung Group, the nation’s leading conglomerate, is changing the way it conducts business in Japan to substantially boost performance.
The Seoul-based group said Sunday that its subsidiaries in Japan will now operate independently from each other. Previously all 18 Samsung affiliates existed under the same umbrella of Samsung Japan.
Well, Samsung now thinks its time to aggressively try to penetrate Japanese market. Anyway, it’s No.1 electronic company in all major markets but Japan.
Another point here is that Samsung Electronics will set up two separated branches in Japan. One for consumer products including TVs and smartphone, and the other for components and parts including semi-conductors like DRAM.
Samsung Electronics has a wide product portfolio ranging from memory semiconductors and LCD panels to flat panel TVs, smartphone and digital cameras. Its two completely different business domain supplement each other and help Samsung to maintain robust revenue regardless with market fluctuation.
But their customers – global electronic giants – are increasingly concerned to the fact that Samsung Electronics is their major supplier and their competitor at the same time. What if the components division leaks the critical information they obtain to consumer products division? They are under the same umbrella, anyway.
For example, Samsung provides application processors, memory chips and batteries to Apple, while its Galaxy series competes directly with iPhone.
So there has been a prospect of possible spin-off of Samsung Electronics to clear these suspicion. And Samsung chose to operate two separate division in Japan. See if it will be the case for Samsung Electronics headquarter in Seoul