Samsung to Split Into Two Major Divisions
Samsung announced a restructuring plan that has the company dividing operations in half. One half will focus on cell phones, TVs and other consumer products. It will be called the Digital Media and Communications division. The other half will focus on the manufacture of components such as displays and memory chips and will be called the Device Solution division. Samsung remains the world's largest manufacturer of Flash memory chips and LCDs. The move is being made in response to softening demand for Samsung's products.
Long Overdue Decision
At its very roots, Samsung is a manufacturer and is very good at making lots of 'stuff' very quickly and efficiently. When they decided to be a player in the furious world of electronics as a branded name, they had no experience at sales and marketing but was over confident enough that their name would make them a fast and huge success.
Their fatal flaw has always been that they did not fully grasp how business is done in America which is for the most part the front lines of the tech industry and is the toughest market to penetrate. They brought their manufacturer mentality and their culture to the U.S. expecting a slam dunk. They were often very conf...