Samsung Electronics’ Future Business Planning Division is looking into how Japanese companies like Sony and Hitachi have successfully revived their businesses in recent years after falling behind Korean companies in the 1990s, according to Nikkei on Oct. 16.
The project, dubbed the “Fall and Rise of Japan’s Electrical Industry,” includes in-depth research into how Sony shifted its core business from electronics to digital cameras and content, such as games, music, and movies. Samsung is also studying Hitachi, which has transformed itself from a manufacturer of machinery and railroad vehicles into a tech company. Both companies restructured their business models after facing crises in the 2000s.
Samsung is also analyzing the strategies of Japanese industrial conglomerates such as Mitsubishi. These companies thrived as trade brokers until the 1990s and successfully transitioned to resource development in the early 2000s. Billionaire investor Warren Buffet also gave his stamp of approval and increased investments in Japan’s top five trading houses—Marubeni, Mitsubishi, Mitsui, Itochu, and Sumitomo.
“Samsung has not changed its business model centered on semiconductors, smartphones, home appliances, and displays for over a decade,” Nikkei said. “As a result, all four sectors are losing competitiveness to Chinese companies.”
Nikkei added, “The current crisis in its flagship businesses has prompted the company to revisit the management philosophy of its late chairman, Lee Kun-hee.”
“We are reviewing over 100 cases globally, not limited to Japan,” a Samsung representative said. The research includes Silicon Valley companies such as Google and Amazon, which have been continuously evolving in response to the rapidly changing business landscape in the era of artificial intelligence (AI).
