Changing Business Structure
Samsung Electronics is making an aggressive investment for new growth engine business items after semiconductors. As Lee Jae-yong, vice chairman of Samsung Electronics, was released on probation, it is expected that such aggressive investment will accelerate.
According to industry sources on February 8, Samsung Electronics is considering establishing a global e-commerce center in Andhra Pradesh, India.
According to local media reports such as that of the Hindu, government officials including minister of information technology Nara Lokesh, the son of Chandrababu Naidu who is governor of Andhra Pradesh of India, met and discussed the matter with Kal Raman, vice president of e-commerce at Samsung Electronics North America in the United States.
Even though Samsung Electronics is being closely trailed by Chinese smartphone maker Xiaomi in India, Samsung Electronics is enjoying the largest market share in the Indian smartphone market. The company operates a smartphone factory in Noida, Uttar Pradesh in the north of India. Samsung Electronics is likely to broaden its business areas in India by paying attention to the growth of the Indian economy which is forecast to reach 7.4% this year.
Technological venture investment is also going on. Juvo, a provider of mobile financial credit information services in San Francisco of the US said on January 24 that it has received strategic investment from Samsung Next in charge of Samsung's investment in start-ups. Details were kept esoteric. The company which offers real-time credit information services through smartphones supports electronic payments and has more than 500 million subscribers on four continents.
"As China is in hot pursuit of Samsung Electronics in markets of finished products such as smartphones, TVs, and household appliances, Samsung Electronics needs to find a breakthrough in the service business centered on data and solutions," an industry observer said.
In reference to this, Sohn Young-kwon, president of Samsung Strategic Innovation Center (SSIC) expressed will for making a change in its business structure, saying, "Samsung Electronics is now a data company" in a CEO summit last October.