The Samsung Brand and its Value

It fits in well with the redefinition scheme Mr. Park is faced with because Samsung is trying to upgrade its image in the mind of the consumer and is considering withdrawing its products from the mass marketing outlets to help in this effort. Placing it in a highly regarded department store would tie the name of The Bay Company to the Samsung name, giving the impression that The Bay Company endorsed the product and thus promoting sales.

The company has a very strong production base in Korea and a large research and development division. The dedication to research and development has allowed Samsung to develop leading technologies and take advantage of opportunities created through the evolution of consumer electronics. From the 1960s until the early 1990s, when consumer electronics were generally analog, the other corporations were introducing new products to the market, and Samsung focused primarily on contract production for the more established brands.

In the 1990s, the consumer electronics industry was rapidly transformed by digital technology (Ye and Kim 3). Traditional consumer electronics manufacturers were not able to dominate these markets. Samsung management, which entered the consumer electronics market in the 1990s, saw an opportunity to become the leading global provider of the next generation of electronic products. Memory chips and visual displays accounted for roughly 90 percent of the cost of most digital devices and Samsung had unique expertise in producing both of these elements. They were the world's leading producer of SRAM and controlled 55 percent of the market for NANO flash memory used in MP3 players and digital cameras. The also led the world in the production of LCD screens for computers, small televisions and all portable devices. Samsung was also expert in bringing products to market quickly. This combination helped the Samsung brand increase in value more quickly than the more established brands such as RCA, Sharp and Toshiba, and the newer appearing LG brand.

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