http://www.eetimes.com/showArticle.jhtml?articleID=212300429&cid=NL_eet
Excerpts from interview with Mr. Jun-Hyung Souk, EVP of Samsung’s Display R&D Center
History has shown us that companies with good vision and R&D can withstand the downturn. This fact is reinforced after learning how Samsung is extending its R&D and manufacturing capabilities of flat-panel TV to solar and immersive displays. Also shifting LCD business into survival model for the downturn with a focus on cost effective products. The decision to get into the new product line has been triggered through the analysis of the flat-panel TV industry growth as well as its own sales. Based on this data analysis, management team has come out with a long term plan to grow and sustain a business that would go beyond 2010.
Strategic activities that could be seen are:
- putting an R&D team together for solar panel
- invest on developing new type of solar panel
- till new type of solar pannel is developed, continue using existing bulk crystalline panel
- use its strong brand, vertical integration (sales, support infrastructure, distribution structure, production facility etc)
Other key notable point in this article is Samsung’s attitude towards accepting downturn as survival game and involve employees for discussions and workshops to seek new growth drivers, quick move from profit plan to survival plan (e.g., better utilization of production methods to reduce cost, develop new methods to reduce cost of producing a product, developing single platform). However focus on new technology, materials for its product development has not reduced but it has increased to create advantage for Samsung.
