Samsung Electronics, which celebrates its 50th anniversary this year, is revving up a “super-gap” strategy to prepare for the next 50 years.
“As we became a world-class IT company 10 years ago by overcoming the global economic crisis, let’s create momentum for growing into a 100 years old global enterprise that runs circles around its competitors,” said Kim Ki-nam, vice chairman of Samsung Electronics in his new year message for 2019 on Jan. 2.
Samsung Electronics' management strategy for 2019 is different from that of 2010. Ten years ago, its five target businesses were solar cells, automobile, batteries, LEDs, biopharmaceuticals, and medical devices. This year, its four new growth engine items are artificial intelligence (AI), 5G mobile telecommunications, biotech and semiconductor-based electronic parts.
In the case of semiconductors, the company plans to keep its number one position in the world by cementing the super-gap with its competitors based on its competitiveness in microfabrication. In addition, it plans to continue to grow by ramping up investment in the non-memory business such as semiconductors for AI and autonomous vehicles. As a semiconductor foundry, Samsung Electronics is also pioneering a variety of new businesses such as blockchain to boost its status as one of the world's top two players.
In the smartphone sector, Samsung has decided to use a dual strategy to conquer both the premium (including foldable phones) and budget smartphone markets of the world.
In the TV industry, the company plans to maintain its position as a global leader by increasing sales of super-large and ultra-high-definition products.
In the home electronics sector, it has decided to expand business to business (B2B) trade of built-in appliances and system air conditioners among others.
On top of that, Samsung Electronics will aggressively invest in basic science and technology to drive its future growth and nurture talented employees. The company will expand the scope of its support for future technology projects to AI, 5G, the IoT and biotech.
It will launch a youth software education project this year to nurture 10,000 talented young software engineers by 2023. Besides, it plans to give support to a total of 500 startups –- 200 within the company and 300 outside -- by expanding the C Lab Program, which is an in-house venture startup development project to external companies.