1. Company gone for Diversification

2. Company gone for Diversification By, Prashant KV Praveen Kumar Prathyaksha Shetty Praveen Devadiga 3. SAMSUNG Samsung is one of the company that gone for Diversification. Samsung adds new or unrelated product lines to penetrates new markets, such as : Textiles, insurance, securities, construction, Solar cells, rechargeable batteries for hybrid cars, LED technology, Smartphone, biopharmaceuticals and medical equipment's in its line of Production. he success of the diversification originated from Samsung's creative understanding of Core Competence. 4. About Samsung Company Samsung is a South Korean multinational company headquartered in Samsung Town, Seoul. Samsung is known as worlds largest information technology company. Samsung was founded by Lee Byung Chul in 1938 as a trading company. After Lee's death in 1987, Samsung was separated into four business groups Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Samsung Electronics has assembly plants and sales networks in 88 countries and employs around 370,000 people. 5. Diversification Strategies Samsung has been successful in diversifying strategy due to a powerful and well- known brand name, advanced technology, extensive distribution network In horizontal diversification, Company creates or acquires production units for outputs which are alike - either complementary or competitive It is the diversification through establishing structure and systems that are most suitable to itself The success of the diversification originated from Samsung's creative understanding of Core Competence 6. R&D investment will be positively associated with a change in diversification strategy In 1993. after it has made success in semiconductors Samsung made a great effort to develop LCD technology LCD has become world's mainstreams products due to its excellent quality, and maintained it at the top for eight consecutive years In 2011, Samsung electronics is diversifying into bio pharmaceuticals by joint venture with investment of around $264.4 million During 2013, Samsung has merged its home grown Bada operating system (OS) with Intel's open source Tizen 7. Challenges The markets are certainly promising, but they entail huge risks In the consumer electronics industry, fierce competition, short life cycles products, always requires focused investments to catch up with changes in technology Working with partners entails sharing information and a view of joint success that is at odds with its insular corporate culture 8. Achievement The 83 firms that are tied together in Samsung's remarkably complex structure provide 13% of South Korea's gross exports Notable Samsung industrial subsidiaries include Samsung Electronics, Samsung Heavy Industries and Samsung Engineering Other notable subsidiaries include Samsung Life Insurance, Samsung Everland Resort, Samsung Techwin (an aerospace, surveillance and defense company) and Cheil Worldwide (the world 16th largest advertising Agency) Samsung has a powerful influence on South Korea's economic development,politics, media and culture. Samsung's revenue was equal to 17% of South Korea's $1,082 billion GDP 9. Rivals Competitors of Samsung Electronics such as Apple, Sony, LG, Nokia, Panasonic, and some Chinese firms had started investing heavily in R&D and product design In medical devices Samsung will be up against firms like Philips, Siemens, Toshiba, Hitachi and GE(for which Samsung made medical equipment between 1984 and 2004) 10. Conclusion Innovation is at the heart Samsung's business success Research and Development Protect its innovations Samsung maintains and strengthens its market dominance through the speedy introduction of new technology. Samsung has made efforts to develop environmentally-friendly products which consume low level of energy and which contains no hazardous material The company has also modified its assembly processes to cut down carbon emissions substantially