Samsung’s New Business Strategy
Samsung Electronics Co., South Korea’s biggest company by market capitalization and the world’s largest manufacturer of television, is considering to separate the Liquid Crystal Display (LCD) businesses and operations into a separate company, as a new business strategy, to improve the competitiveness. This unit of company saw 10% of drop in sales last year.
This new business strategy comes after the end of partnership of Samsung with Sony Corp. late last year and in the situations of decline in sales of flat-screens.
With this separation, the company will be able to focus and invest on more profitable areas of technological industry such as smartphones, non-memory chips and next-generation panels.
The company’s shares elevated to a historic high by 5.1% as the separation is expected to support the profitability.
Expectations of the merger of LCD unit with Samsung Mobile Display are speculating. Samsung Mobile Display unit is developing organic light-emitting diode (OLED) displays for mobile devices.
Many of the display manufacturers from Samsung to LG Display Co. are considering to make OLED displays. OLED is currently used in smartphones and the experts are of the view that it will soon replace LCD in larger screens.
(Via WSJ)
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