Currently South Korea's largest "chaebol," a type of family-run business group that plays a big role in the country's economy. Samsung is typical example of a postmodern times business success:Â its transition from dealing only in regular consumer electronics to semiconductors and phone technology, is a testimony of the dynamism of the organizationâ€™s leadership in the last decade.
Prior to 2011 when it released the first of its Samsung Galaxy Note series, people perceived phones of 4.3 inches display as being too large for everyday use, hence the arrival of the first in its Note series was a revolutionary step that was marked by great uncertainty about its success. At the end, not only did the companyâ€˜s new product become a huge market success but its record 5.5 inches display smart phone as at July 2011, became â€˜ a conversation starter even without its owner saying anything to the other party and has transitionally competed favorably with likes flagship products from other brands.
The same resilience is anticipated by investors and external observers of the technology giant as it faces one of its most difficult period, at least since the launch of the Samsung Galaxy Note 1 only this time itâ€™s not an issue of uncertainty faced by a new or somewhat revolutionary product but the blow comes from the failure of its latest phone technology innovation project: the Samsung Galaxy Note 7. The hitherto Samsungâ€™s love child which prior to its launch made headlines around the world for its rare mix of sophistication and compatibility has been reported by owners that the phones' batteries had caught fire while charging, and consequently have had aviation authorities warn people not to use them on board planes.
Contrary to this latest developments, Samsung (SSNLF) shares trading in Seoul jumped 4.5% on Thursday 6th October, 2016 after an activist hedge fund called for an overhaul of the South Korean company's complicated structure and a special $27 billion payout to shareholders. As though that wasnâ€™t enough hype for a company who just had to recall its top phone tech product from the market for an obvious design flaws, The U.S. fund, Elliott Management, argues that Samsung's relatively cheap share price could skyrocket if the company's management is willing to make a series of key reforms. In response, Samsung said it will "carefully review" the proposals from the hedge fund, which is run by billionaire investor Paul Singer.
All these drama leaving a watching world in consternation encapsulated in one question: what really is the fate of the global technology giant?