Samsung Electronics integrated the Digital Imaging Business Division, in charge of cameras, with the Wireless Business Division. Samsung Electronics began to create synergies between smartphones and cameras in a bid to capture the largest share of the global mirrorless camera market in 2015. Also, earlier this year, the company created the Enterprise Business (EB) Team, and turned the global B2B Center into a quasi-business division. Its intention is to reinforce B2B sales as the consumer goods market is saturated.
Samsung Electronics executed reorganization on December 11.
Samsung Electronics maintained the 3-company business system: vice-chairman Kwon Oh-hyeon (DS: Device Solution), CEO Yoon Boo-geun (CE: consumer electronics) and Shin Jong-gyun (IM: IT Mobile). Global economic recession continues, but they performed excellently. We need to keep an eye on the IM Company during this organizational realignment. Samsung Electronics removed the Digital Imaging Business Division in charge of cameras. Samsung Electronics reshuffled it into the Imaging Business Team, and plans to make full use of the Wireless Business Division which has the leadership in the global market.
Samsung Electronics explained, “We will transplant the brand, sales networks, software competency and manufacturing competitiveness of the Wireless Business Division into the Camera Business Division, and integrate the technical know-how of the two business divisions into competency for differentiating our smartphones.” To increase its share of the camera market, it will take advantage of the networks and marketing know-how of the Wireless Business Division and enhance the camera competitiveness of smartphones at the same time. Under the Media Solution Center of the IM Company, Samsung Electronics created the Big Data Center. It looks like a measure to actively respond to changes in trends by means of Big Data analysis. Some business divisions, such as the Washing Machine Business Division, have already capitalized on the Big Data analysis technique to produce visible outcomes.
The DS Company will enhance its research competency. Its intention is to find future revenue generators like memory solutions, application processors (AP) and foundries. To this end, the Solution Development Office and the Modem Development Office were created in the Memory Business Division and the System LSI Business Division respectively.
Just a year after the establishment of the EB Team, the global B2B Center was elevated to a quasi-business division. It means that the company is reinforcing its overseas B2B sales and marketing. It looks like a measure to improve the profitability of the CE and IM Company. A Samsung Electronics insider said, “As it became a quasi-business division, manpower will be greatly increased.” Samsung Electronics, which has been concentrating on the consumer goods market, has been reinforcing B2B sales since 2011, and began to produce visible results this year. “The B2B Company is improving evenly in major markets around the world,” said a high-ranking Samsung Electronics official. “It is raising its market share by bringing B2B lineups to the market with a high level of reliability and brand awareness.” A representative example is that the Large Format Display (LFD) company saw its global market share go up from 12.0% in 2011 and 18.3% in 2012 to 25.5% in the first half of this year.
In the personnel shake-up, which was carried out on the same day, 5 out of 10 regional directors were transferred. Lee jong-seok, director in charge of North America (vice-president) will also serve as CEO of Samsung Telecommunications America (STA). Bae Gyeong-tae, director in charge of the Middle East (vice-president) will become director in charge of Korea, and Lee Chung-ro, executive director of the Digital Appliance Business Division, will become the director in charge of the Middle East.
Kim Seok-pil, vice-president in charge of Europe, will serve as head of the global marketing office and head of the global B2B Center, and Lee Seon-woo, head of the video strategy marketing team (vice-president) of the VD Business Division, will take charge of Europe. Lee Seon-woo will be replaced by Park Gwang-gi, vice-president in charge of Southeast Asia, who will, in turn, be substituted by Kim Moon-soo, executive director of Strategy Team 1 of the Future Strategy Office.
The vacant position of the HR Support Team will be filled by Park Yong-gi, executive director in charge of the HR Support Team of the Future Strategy Office, and Nam Gung-beom will become head of the Finance Team. Oh Gyeong-seok, vice-president in charge of the Development Office of the LED Business Division will take the helm as head of the LED Business Division.
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