How Samsung Became the World's No. 1 Smartphone Maker | Economics | Scoop.it

Consider the disciplined way Samsung Electronics moves into new product categories. Like other Korean conglomerates—LG and Hyundai come to mind—the first step is to start small: make a key component for that industry. Ideally the component will be something that costs a lot of money to manufacture, since costly barriers to entry help limit competition.

 

Microprocessors and memory chips are perfect. “A semiconductor fab costs $2 billion to $3 billion a pop, and you can’t build half a fab,” says Lee Keon Hyok, Samsung’s global head of communications (and no relation to Chairman Lee).


Via Justin Jones