Samsung Chief Calls for “Do-or-Die” Strategy to Overcome Crisis – International Edition (English)

The chairman of Samsung Electronics, Lee Jae-yong, cautioned his executives that the firm has “become less competitive” and needs to address these issues with a “win-at-all-costs” attitude, as reported by people familiar with the matter.

Samsung relayed Lee’s message to the executives during a seminar designed to strengthen the company’s sense of self, according to reports on March 17. This seminar, taking place at the firm’s training facility in Yongin, located just below Seoul, began towards the end of February and has involved approximately 2,000 executives from various Samsung subsidiaries.

The presentation at the seminar included a video showcasing the business ideologies of Samsung’s deceased founding father, Lee Byung-chul, and previous chairman, Lee Kun-hee, along with comments made by Lee Jae-yong.

“Samsung’s future hangs in the balance,” Lee stated in the communication, as per insiders. “Leadership needs to undergo profound introspection.” Additionally, he highlighted that the organization ought to concentrate on how it handles crises instead of just dealing with the crises directly. “Long-term investments should take precedence over immediate profits,” he emphasized. Lee was notably absent from the accompanying video.

The executives who attended the seminar were presented with a small crystal plaque, similar in size to a business card, featuring the inscription: “Samsung people—resilient during crises, robust in recoveries, and unwavering in competitiveness.”

Samsung has found it difficult to leverage advances in AI-powered semiconductors, like high-bandwidth memory (HBM). In the previous year, the company experienced a reduction in its worldwide market share across major sectors, which include TVs, smartphones, and DRAM chips.

Based on its most recent business report, Samsung experienced a decline in its global television market share, which dropped from 30.1% in 2023 to 28.3% the previous year. Similarly, its smartphone market share decreased from 19.7% to 18.3%. Additionally, Samsung’s leading role in DRAM witnessed a slight dip as its market share reduced from 42.2% to 41.5%. In the automotive and audio industry, where Harman operates as one of Samsung’s subsidiaries, the company’s digital cockpit segment faced a reduction in market share, falling from 16.5% to 12.5%.