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Shaw Capital Management News: Samsung Streamlines Japan Branch

South Korea’s leading conglomerate, Samsung Group, announced its plan change tactics in dealing with the Japanese market in an effort to quicken their decision-making procedures.

The company based in Seoul announced that their affiliates in Japan can now operate apart from each other, disbanding the existing umbrella called Samsung Japan consisting of 18 subsidiaries.

Japan is one of the very few nations where Samsung has failed to lead the competition as consumers there patronize local brands like Sanyo, Panasonic, Toshiba and Sony more. In addition, primary distribution channels in Japan are allegedly reluctant to retail Samsung products, the global leader in memory chips and flat-panel displays.

According to the leader of Samsung’s Consumer Electronics division, Japan is a very complex boiler market so they will have to reassess how to increase their TV sales from rigorous market reviews.

The company plans to disband the Samsung Japan and when it has taken effect in May, their affiliates will have more room for independency. The reason behind it is the new structure will enable more efficient coordination of business schemes among their affiliates in certain nations.

The brand image of Samsung has significantly improved recently as compared to past years. They reckon that if they will be able to respond quicker to their clients’ needs, things will improve for the better. That is why they have chosen to streamline their business structure in Japan.

After Samsung has utilized a new management style from its leader Lee Kun-hee, the team set an integrated head offices in 5 nations, which includes the one in Japan, in 1994.

The recent decision also needs Samsung Electronics to split into 2 departments: the parts-making and finished-goods. An official said that this move aims to fine-tune their technique and will boost their market presence in Japan.

Samsung appears to be more positive inspite of many Japanese electronics firms’ continued struggle because of the strong yen and late responses to the new technologies.

 

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