Samsung Electronics Gets Aggressive in New Year

Samsung Electronics turned its Morocco branch into a corporation early this month, having done the same in South Africa.

The opening of the Moroccan corporation shows Samsung’s commitment to its expansion in emerging markets. The South Korean giant began its foray into the African market by establishing a branch in South Africa.

○ Aggressive global marketing

Samsung’s aggressive steps come on the back of rosy prospects for the company’s performance this year. Samsung became the first Korean company last year to post 100 trillion won (890 billion U.S. dollars) in sales and 10 trillion won (8.9 billion dollars) in operating profit. Both statistics are expected to improve further this year.

Samsung Vice President Lee Jae-yong, who will be at the center of management from this year, will inject fresh momentum into the company’s campaign to penetrate new markets. Since 2010 is the first year for him to prove his ability, the heads of all business departments and divisions in the company will double their efforts to support Lee.

The resumption of public activities by former Samsung Group Chairman Lee Kun-hee will also boost the electronics company’s global campaign. Chairman Lee Kun-hee drew world attention by having dinner with former and current members of the International Olympic Committee at the 2010 International Consumer Electronics Show in Las Vegas last week.

○ Rallying from behind to lead

The focus of Samsung Electronics’ global campaign is sectors that have lagged behind in the global market. Consumer electronics is one of them.

Moon Kang-ho, head of the digital air solutions department at Samsung Electronics, recently told reporters, “The air conditioner business has been sluggish, but we are laying the groundwork to be a world leader in the sector by focusing on advancing overseas.”

The company seeks a combined three trillion dollars in revenue at home and abroad through air conditioner sales alone.

The laptop computer business, which has shown a feeble performance in the U.S. market, will also get more attention. Since its entry into the U.S. in 2006, the company has expanded its product line-up but made little progress.

This year, however, it will introduce its “Premium Notebook” to do better in the American market.

○ Sports marketing to boost global image

Samsung Electronics will make the most of global sport events this year in sponsoring the Vancouver Winter Olympics, the Guangzhou Asian Games and the African Nations Cup.

Sporting events are considered a good opportunity to boost a company’s global image. A source in the advertising sector said, “Unlike other advertisements, sports sponsorship enhances a positive image of a company since the objective of supporting sports is pronounced.”

○ Aggressive strategies to pay off

Experts say Samsung Electronics’ aggressive strategies will help it achieve a much better performance this year. The consumer electronics sector is expected to make strides as well.

Oh Se-joon, a researcher at Hanwha Securities, said, “Samsung’s air conditioner business has lagged behind its competitors, but the company can gain an edge with high efficiency and environment-friendly products.”

achim@donga.com