Nikkei: Samsung looks to Japan’s Sony, Hitachi to tackle growth crisis

Samsung Elec’s Future Business Planning Division is looking into how Japan’s Sony and Hitachi have successfully revived their growth in recent years after falling behind South Korean companies in the 1990s, Nikkei reports.

It is being reported that Samsung has not changed its business model centered on semiconductors, smartphones, home appliances, and displays for over a decade. As a result, all four sectors are losing competitiveness to Chinese companies.

The current crisis in Samsung’s mobile and semiconductor businesses has prompted it to revisit the management philosophy of its late chairman, Lee Kun-hee.

Project “Fall and Rise of Japan’s Electrical Industry”

Samsung Elec’s evaluation project includes in-depth research into how Sony shifted its core business from electronics to digital cameras and content, such as games, music, and movies.

Under the supervision of Chairman Lee, the company is also studying Hitachi, which has transformed itself from a manufacturer of machinery and railroad vehicles into a tech company.

• Both companies restructured their business models after facing crises in the 2000s.

Samsung is also analyzing the strategies of Japanese industrial conglomerates such as Mitsubishi. These companies thrived as trade brokers until the 1990s and successfully transitioned to resource development in the early 2000s.

“We are reviewing over 100 cases globally, not limited to Japan,” a Samsung representative said.

The research also includes Silicon Valley companies such as Google and Amazon, which have been continuously evolving in response to the rapidly changing business landscape in the era of artificial intelligence (AI).