Resignation from a person who redefined a company is always a serious concern for the analyst world. The resignation of Kwon-Oh-Hyun has come as a surprise because the company is beating profit and revenue estimates for the year. Kwon-Oh-Hyun is resigning from the higher position in hope that new leadership will deal with the present crisis with a fresh mindset and it will eventually add value to the business.
Lee Jae-Young:
Lee Jae Young was a de facto leader of the Samsung group. Recently he was imprisoned for the criminal offense charges for bribery. Mr. Kwon-Oh-Hyun was probably referring to the internal management problems arising from the imprisonment of Lee Jae Young.
The leadership of any company is a core strength for any operation and Mr. Lee being the successor of the company founder was a suitable leader to lead the company into the future.
Past record of Samsung:
Past record of Samsung to exhibit a situation of crisis in a not so crisis related circumstances have always been the norm. Early this century, Samsung posted a huge profit after making such a state of crisis that company is in. People are expecting the same this time and expecting that the earning potential and market acceptability for Samsung smartphone will further improve. Because Samsung is constantly investing the research and development to continue to maintain the largest market share of the smartphone industry. Samsung electronics being the crown jewel of this gigantic conglomerate, emphasis by the management of this division is reasonable. And the technology shift in the smartphone industry is rapid and frightening.
Future of Samsung:
Samsung reliance to growth on profit and revenues on latest smartphone devises is genuine a bet for the future. Samsung other core business comprises of memory chip business. As the global technology is moving towards large data center and data-oriented companies. The need to save and analyze the data is becoming a need for every business. Samsung can expand on this core strength and further improve their business to tap the upcoming market of data storage.
Impact of automation:
Impact of automation and revolution of artificial intelligence is also a huge turning point in the demand for chip technology. For instance, the autonomous driving car will require storing 4000 gigabytes. Considering the high demand for Samsung products, there are high chances for the group of the companies to expand upon the opportunities and grow.
Another aspect of automation in the business community is enterprise resource planning. The idea of collecting, analyzing and using the information for the benefit of the business. There are various accounting software clients and data-based is maintained in large storage chips and is resumed when required by the organization. There is a huge market for the Samsung Company to capture and expand upon as a side business to their chip business to the smartphones. For instance, for accounting UK is a huge market for micro and macro accounting software for various companies of various sizes and structure.
Conclusion:
The resignation of Kwon might seem like the end of the story for the Korean tech giant, but the past trend line, commitment to technology and other favorable aspects for the organization are relatively making different claims. Later on, Samsung might change their core business again adapt the changing requirement of the customer market.
Yet technology is a risky sector and as the technology is continuously improving, no one knows when and how another company will bypass Samsung in all technological aspects.
