Three unfavorable factors: Where is Samsung's chance to redeem itself?

Samsung, whose founder is in poor health, may have had a bad year recently. The company's third-quarter financial report shows that its net profit may have fallen 59.7% year-on-year to 4.1 trillion won. It should be noted that this is the fourth consecutive quarter of decline for the giant.

If we extend the timeline a little further, we can see that Samsung is in trouble. This reminds us of companies like Sony and Sharp, which are on the decline in performance, giving people a sense of the twilight years of a martyr. In general, the problems Samsung is facing are mainly:

1. The sharp decline in market share in the smartphone sector. According to IDC, Samsung's share of the smartphone market was 25.2% in the second quarter of this year, compared with 32.3% in the same period last year. Although it is still the first in the industry, it has dropped by 7.1 percentage points in one year, a drop that can be described as a "diving" level.

Feedback from the Chinese market seems to give people a more intuitive feeling. In 2013, Samsung was still the undisputed leader in the Chinese market, but only one year later, Samsung was surpassed by Lenovo, Xiaomi and other companies. A Lenovo executive once lamented that it was somewhat unexpected for Samsung to become the number one domestic mobile phone brand because it declined too quickly.

It should be pointed out in particular that the Chinese market is the most important smartphone market in the world, and in this single market, Samsung is facing the wolf pack tactics of domestic mobile phone manufacturers, and its market share is being continuously eroded.

2. The soft power related to patents is weak. Just yesterday, Samsung initiated an arbitration procedure against Microsoft and is suing Microsoft over smartphone patent royalties.

This is a commonplace topic. Industry insiders should still remember the century-long battle between Samsung and Apple. This battle has brought Samsung a certain amount of attention, but it has also paid a high price. Many companies, such as HTC, have been devastated by patent wars. Whether Samsung can win the patent challenge from Microsoft will directly affect the company's profits and operating trends.

In fact, Samsung has been trying to get rid of its dependence on traditional giants. For example, Samsung invested heavily in building a smartphone operating system, which is actually a kind of struggle for Samsung's smartphone patents. But unfortunately, Samsung's plan was stranded and no satisfactory product was produced.

3. The downturn in other businesses. On the PC side, Samsung has been unable to break through the siege of Lenovo, HP and other companies. This year, Samsung only launched two new notebooks, ATIV Book 9 and ATIV Book M. Industry analysts believe that Samsung may withdraw from the notebook market.

Judging from the above factors, Samsung has indeed encountered challenges. In 2013, many Japanese companies went downhill. Is it the turn of Korean companies this year? Blue Whale TMT Network believes that Samsung will not sit idly by because the company still has many advantages that can help the company rise again:

1. Samsung has a stronghold

This is a bit like Lenovo. Lenovo Group's headquarters is in China, so even when Lenovo Group faced global losses in 2008, Lenovo still had a position to fight back. This is also one of the reasons why Acer failed in the PC era. The company's roots are in Taiwan, China, and its market capacity is too small to support Acer's global layout.

Samsung and Lenovo are somewhat similar. Samsung's headquarters is in South Korea, where the company plays a vital role, affecting about 20% of South Korea's GDP. No matter how external conditions change, Samsung has a platform to support itself and counterattack.

2. Lee Kun-hee will play a role again

Samsung is a typical example of the inheritance of Eastern enterprises. The group has a personality cult for Lee Kun-hee, whose influence cannot be underestimated. The time when Samsung's problems broke out was also the time when Lee Kun-hee's health began to deteriorate. The new crown prince Lee Jae-yong is not yet capable of fully controlling the Samsung empire.

The good news now is that the condition of Samsung Electronics Group Chairman Lee Kun-hee is improving.

3. The vertical integration capability of the industry chain is still unmatched

What are Samsung's advantages? Vertical integration of the industry chain. Samsung has the best chips, screens, and storage in the world, which ensures that Samsung's supply chain management is top-notch in the world, and that good raw materials are used in its own products as much as possible.

Lenovo launched the first generation of LePhone, but sales were average. When discussing this topic, Lenovo management pointed out that its screen was made by Samsung, but the company encountered Samsung's cut-off. This means that Samsung has a significant influence in the smartphone industry.

In the recent Internet war of words, Luo Yonghao and Wang Ziru also admitted that the best mobile phones in the market are still Apple and Samsung. In terms of product details, Samsung's technology is more mature and has stronger strength. In addition, the good news is that Samsung recently released a new smartphone Note 4, and new products are usually helpful in increasing market share.

4. Samsung’s strength in the enterprise sector should not be underestimated

Recently, Samsung launched a new enterprise service, which is seen as a way to bite Apple and IBM. Samsung's advantage is that its enterprise service supports all platforms and operating systems, including iOS and Windows devices. So this transformation is coming in full force.

Similar to the alliance between Apple and IBM, Samsung chose Google as its ally, and the two sides are planning to develop in the enterprise market. Analysts believe that this combination is the only group that has the hope to compete with Apple and IBM, because of Samsung's strength in terminals and Google's soft power.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.