Samsung

Seeking to delineate a pathway for the development of Samsung Electronics, it seems reasonable to argue that before the organization can begin to focus non-memory technologies, it must first define its strategic objectives over the short- and long-term. While the organization appears to have undertaken this process within the context of developing its memory technology marked, the organization’s decision to enter the non-memory technology market was spurred more by the schizophrenic nature of the memory technology market and the hope for a potential cure for all of the organization’s financial problems. What the organization has discovered through its decision to enter the non-memory technology market with no concrete strategic plan is that success in this market requires a different set of competencies than the Samsung organization currently utilizes. As such, the organization must regroup and reconsider what its core competencies are and how the R&D and production segments of the organization can facilitate the achievement of these competencies.
With the realization that the organization must reconsider its strategic position in the market, there is a clear impetus to look at specific data regarding the development of memory and non-memory markets. Data regarding these two markets clearly indicates that while the non-memory sector of the industry lagged in growth until about 1993, dramatic increases in this industry have occurred over the course of the last eight years. In addition to the fact that the growth of the industry has been overwhelming, when compared to the memory segment of the market, the non-memory segment is 4 to 5 times higher in growth per annum. Further, while the growth of the memory market has improved, over the course of the last 20 years there have been marked fluctuations in its overall stability. This has not been the case in the memory sector. Even though growth in this area has experienced some setbacks, overall growth has been markedly stable with significant increases each year.
Arguably, there is little doubt that the memory segment of the market provides a more stable area of growth for the Samsung organization.