While initially a latecomer in mobile phones, displays, and design, they overcame the odds with bold moves.
“To create ‘beyond possibility,’ we need to ‘see beyond possibility’ through deep introspection.”
Scott Stern, a professor at the MIT Sloan School of Management, highlighted Chairman Lee Kun-hee’s leadership at the 3rd Anniversary Memorial of Chairman Lee Kun-hee and 30th Anniversary of Samsung’s New Management International Academic Conference’ held at Samsung Electronics Seocho Office in Seoul on the 18th. Professor Stern is recognized as a world-renowned scholar in strategic management, having won the Kauffman Foundation Award in 2005 and the Academy of Management Award in 2021 for his contributions to entrepreneurship.
Professor Stern explained Chairman Lee’s leadership by mentioning the mobile phone business case. In the Frankfurt Declaration of 1993, the late Chairman declared change and emphasized strengthening the ability to overcome limits.
“Samsung entered the mobile phone business in the late 1980s, but at the time, expectations for the quality of Samsung products were low, and it was uncertain whether they would succeed in the mobile phone market,” he said. “But Chairman Lee saw beyond the possibility in the mobile phone market.” Enraged by the poor quality in March 1995, the late Chairman carried out the famous ‘Anycall Fire Ceremony.’ It is interpreted that Professor Stern diagnosed that the late Chairman boldly threw a quality gamble because he saw ‘beyond the possibility.’
Professor Stern highly praised the late Chairman’s strategic alliance with Google. Samsung was successful in the feature phone market but was hit by the iPhone shock in 2007. Instead of insisting on Samsung’s independent line, the late Chairman threw a gamble to form an operating system (OS) alliance with Google, which hit the mark. Professor Stern emphasized, “Unlike Motorola and Nokia in the 2010s, Samsung collaborated with Google” and “built a giant app ecosystem and divided the smartphone market with Apple.”
Professor Stern explained that Samsung’s display improvement speed was fast. It is said that they proactively applied Cathode Ray Tube (CRT), Liquid Crystal Display (LCD), and Organic Light light-emitting diode (OLED) panels to finished products.
Professor Stern said, “The display business was a fast follower behind Sony and Panasonic at first,” but “Chairman Lee quickly switched to LCD when he saw that the CRT market was not going to continue.” He added, “After the financial crisis, when uncertainty increased, he went to OLED, saying that global business opportunities should be preempted.”
He also emphasized that “Chairman Lee recognized the importance of design and influential technology early on.” Professor Stern said, “Samsung’s Bordeaux TV was decisive,” and “Chairman Lee uniquely approached technology and design.” He added, “Chairman Lee has paved the way for Samsung and South Korea to move forward to the future with creation beyond impossibility.”
By. Min Hye-jung and Seo Hyo-bin
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