Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Android
    • Android
    • Mobile

    Samsung Looks to Reshape Itself Into a More Flexible Company: Report

    By
    Todd R. Weiss
    -
    March 27, 2016
    Share
    Facebook
    Twitter
    Linkedin
      Samsung

      Samsung wants to make itself nimble, while also mirroring the energy and flexibility of a startup, as it works to compete more effectively in the world marketplace against key rivals including Apple. To do that, the company is about to revamp its business processes in an attempt to reshape its slow-moving and conservative structure of the past.

      That is what’s behind Samsung’s newly announced moves to “move away from a top-down culture and towards a working environment that fosters open dialogue,” according to a March 24 story by Reuters. The company’s business leaders will sign a pledge to work toward making such changes, will reduce the number of staff layers in its hierarchy, and will move to increase online discussions between business division heads and employees in an attempt to make Samsung more flexible, the story reported.

      “We aim to reform our internal culture, execute as quickly as a startup company and push towards open communication and continuously innovate,” the company told Reuters in a statement.

      Samsung has been battling a pattern of sluggish sales over the last several quarters as it competes in some very competitive markets, including smartphones, televisions and DRAM chips, according to earlier eWEEK stories.

      In January, Samsung reported fourth-quarter 2015 revenue that was up slightly, while its operating profit was down compared with the prior quarter. Samsung had an operating profit of $5.05 billion (6.14 trillion Korean Won) for the fourth quarter of 2015, which is down from the $6.4 billion the company posted in the third quarter. The company’s Q4 2015 consolidated revenue was $44 billion (53.32 trillion KRW), which is up from the 51.68 trillion KRW reported in Q3. The fourth quarter ended on Dec. 31, 2015.

      For the fourth quarter of 2014 ended Dec. 31, Samsung posted revenue of $48 billion, which is an increase of 11 percent from Q3, when the company posted $43.2 billion in sales. Net profit for Q4 was $4.8 billion, up 26.3 percent from the $3.8 billion that was posted in Q3, according to figures the company released on Jan. 29.

      For the full year of 2015, Samsung reported total revenue of $166 billion (200.65 trillion KRW) and an operating profit of $22 billion (26.41 trillion KRW). That compares to total revenue of 206.21 trillion KRW for the full year of 2014 and a full year 2014 operating profit of 25.03 trillion KRW.

      Samsung is continuing to look for ways to increase profitability in its existing business units while also focusing on expanding markets such as the Internet of things (IoT), particularly in the smart home and smart health market segments.

      It’s outlook for the rest of 2016 likely includes “single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition,” the company said in January.

      The rapid declines that Samsung continues to experience in smartphone profits and a dearth of new businesses to drive growth are key reasons for its moves to “reform its military-style working culture to foster innovation,” Reuters reported.

      One new business direction that Samsung is apparently pursuing is artificial intelligence, according to a March 23 story by Bloomberg, which reported that the company is “actively looking” to acquire developers of artificial intelligence to create new revenue streams as soon as possible.

      Samsung “wants to morph into more of a software-driven company,” Executive Vice President Rhee In Jong told Bloomberg in an interview. “We are actively looking for M&A targets of all sorts in the software area,” said Rhee. “We are open to all possibilities, including artificial intelligence. Intelligence is no longer an option—it is a must.”

      Todd R. Weiss
      As a technology journalist covering enterprise IT for more than 15 years, I joined eWEEK.com in September 2014 as the site's senior writer covering all things mobile. I write about smartphones, tablets, laptops, assorted mobile gadgets and services,mobile carriers and much more. I formerly was a staff writer for Computerworld.com from 2000 to 2008 and previously wrote for daily newspapers in eastern Pennsylvania. I'm an avid traveler, motorcyclist, technology lover, cook, reader, tinkerer and mechanic. I drove a yellow taxicab in college and collect toy taxis and taxi business cards from around the world.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×