Today, The Financial Times reported that Samsung surpassed HP as the world?s biggest technology company based on sales. This was achieved by achieving annual sales in 2009 of $117.8. Billion over HP?s $114.6 Billion. Even putting into consideration that 2009 was technically a recessionary year, Samsung still managed to grow and grab the coveted #1 spot. While this comes as little surprise to most who have been following the South Korean giant, it has been a long time in the making.
This development by Samsung shows that South Korea has continued to foster research and development pertaining to technology and the investments made by the South Korean government and Samsung have paid off in ways that they could never have imagined. Companies like LG and Samsung are direct results of those investments, but of course the government is not entirely responsible for Samsung?s growth. Samsung owes its growth to the innovations of the company itself and its continued drive to make new and innovative products that the consumer wants.
What allows Samsung to become such a large technology company is the fact that they have a very large manufacturing arm in addition to their consumer electronics division. And, of course, this allows for them to vertically integrate the process of production and reduce costs. This can be seen through the creation of another South Korean company?s business model when they manufacture such products as automobiles. This company is better known as Hyundai. Hyundai has mastered the vertical integration concept and managed to sell their cars at a price level that puts them in direct competition with Japanese car makers, even though, their quality is questionable.
Samsung has not entirely adopted this model, but they are famous for their consumer brand of TVs, Mobile Phones, and other Mobile Electronics. They also manufacture for other electronics manufacturers because they have their own fabs. These fabs make integrated circuits for various types of chips including memory such as NAND and DRAM. Samsung?s chips can be found in many of their very own competitor?s products, and as a result? they profit either way. Samsung for the most part participates in industries that relate directly to electronic components or consumer electronics. They also do have a large manufacturing arm which enables them to manufacture things like ICs. Like many conglomerates, Samsung has many employees numbering in the hundreds of thousands and as a result the South Korean government wants to make sure that they continue to employ thousands of South Koreans and supplies them with many beneficial reasons to stay in South Korea.
Overall, considering Samsung?s place in the technology industry and their embedded role within it, it comes as no surprise that Samsung is now the biggest technology company in the world based on $117.8 Billion in sales [over HP?s $114.6 Billion]. Now this begs the question, will Samsung be able to continue this trend into 2010 and retain their place as #1 or will they falter? Based on their lineup of products they announced at CES, including all of the 3D announcements, we can say that Samsung will continue to innovate and follow the industry trends in 2010 and maybe even set a few.