Samsung began as a small trading company in the year 1938 by Lee Byung-Full with only 30000 won, which equals $27 USD in Taegu, Korea. At that time, the company only had 40 employees and it began as a grocery store. Due to its success, the company expanded to Seoul and then the Korean War broke out. After the end of the war, Lee started a sugar refinery and then expanded into textile and construction.
Initial stages of Samsung electronics
The company kept growing and in the year 1969 and Samsung entered into the electronic business with help of Sanyo. It began making its cheap microwave ovens, TVs and other consumer products for electronic companies such as General Electric. During the 1970s, the company established Samsung Petrochemical and then Samsung heavy industry. In 1980, Samsung begins producing electrical products under its own brand name.
In the year 1980 Samsung ventured into telecommunications industry when they purchased Hanguk Jeonja Tongsin. During their initial time in the telecommunications industry, they only made telephone switchboards however, they soon begin making telephones and fax systems. By the year 1983 they begin making their personal computer and eventually they shifted to making the mobile phones.
The mobile phone division was merged with Samsung electronics because they were largely investing in the mobile phone business during the 1980s. Soon the company expanded its reach to Tokyo, England, Portugal, New York as well as Austin Texas.
Samsung becoming Major Corporation
Samsung was expanding throughout the 1990s and became an international corporation during that time. After achieving success, construction and engineering division Samsung started focusing on the electronics in the year 1993. During this time, Samsung also became the second largest manufacturer of chips and Samsung electronics also invested heavily in the LCD technology, which paid off. They became the largest LCD manufacturer in the world by the year 2005 and started supplying LCD to most of the mobile phone companies.
Samsung electronics are now considered top notch. Samsung not only changed the perception of the public about them self but also the Korean products.
Initial stages of Samsung Mobile Phones
Samsung achieved great success in mobile phones but in the start, the company had some rough time. Samsung has begun its mobile telecommunication business in the year 1983. In the year 1986, the company released its first build-in car phone called SC-100 but due to its quality, it did not achieve any success. Despite the failure, Samsung was determined to stay in the mobile phone business. Motorola was the leading mobile manufacturer at that time so Samsung bought 10 of their mobile phones for benchmarking. In 1988 after two years of hard work, the company built its first mobile phone SH-100. This phone was not manufactured in large quantities and was only confined to Korea.
On June 7, 1993, all Samsung executives were gathered and they were given instruction to make cell phones that could compete with Motorola by the year 1994 or else Samsung will give up on the mobile phone business.
In the November of 1993, the company revealed its new model named SH-700, which was lighter than any other company’s model, and its design was compact. In the October of the year 1994, SH-760 mobile phone was introduced which was the updated version of SH-700. The brand name of this new mobile was Any call. During this time, Samsung wanted to change the perception of customers about their cell phones and wanted to build their trust.
In the year, 1996 Samsung made its first CDMA cell phone. To keep up with the other companies and the latest trends. The first digital SCH-100 was made which was light, slim and had a clearer voice communication system. Before people knew, Samsung had become the leader in PCL (Personal Communication Service) market. Samsung’s first PCS phone called SCH-1100 was introduced which was lightweight, had the ability to capture faint sounds and has enhanced battery life.
During the year, 1996 Samsung signed a contract with sprint, which is an American CDMA carrier. According to the contract, Samsung would provide PCS phones for three years under the brand name Sprint-Samsung. After that, Samsung expanded into Hong Kong and Brazil.
By the end of the year 1997, which was, one year after CDMA service was launched Samsung had dominated the market with 57% market share in CDMA and 58% market shares in PCS.
In the year 1999, Samsung has more than 50% shares in the CDMA market but CDMA market was smaller compared to the GSM market because GSM market was 70% in the total worldwide telecommunications market. To keep up with the competition Samsung entered into making mobile phones for GSM market.
They made their first GSM cell phone called SGH-200 for European customers but this model didn’t perform well as much as the company’s CDMA phones. It was difficult for an entry-level company to keep up with the old players of GSM. The next model did not perform well either so they changed the design of their cellphones to suit the taste of European customers. In the year, 1998 Samsung introduced SGH-600, which performed quite well in the European market.
In the year, 2008 Samsung telecommunication declared a new strategy. According to this strategy, the focus was shifted to consumer marketing. Samsung mobiles were divided into six different types of mobile phones, which include Multimedia, Style, Essential, Business, Connected and Infotainment
Smart Phone Era
Samsung mobile division introduced its first smartphone Samsung Galaxy in the year 2009, which put them behind Apple because Apple at that time was the lead manufacturer of smartphones. After that that the company released another smartphone in the same year but both of these mobiles did not achieve the success that the company was hoping for.
With the release of Samsung Galaxy S, the company took the market by storm and it became one of Samsung’s most famous smartphone. The company sold more than 25 million units of the cell phone. The company due to its success made different variations of Galaxy S.
In the October of 2011, Samsung released its first phablet Galaxy Note that was the combination of tablet and mobile phone. It also had an S Pen, which could be used to navigate the user interface of the mobile. 10 million unit of Galaxy note has been sold.