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Taiwanese firms could
learn from Samsung
By Chu Yen-kuei ¦¶¨¥¶Q
Samsung Electronics recently lost the patent infringement lawsuit that Apple had
launched against it in the US. Paradoxically, although Apple was the big winner,
the loss could be beneficial to Samsung, the world¡¦s biggest supplier of mobile
phones. Not only will Samsung gain better name recognition in the US market, but
thanks to the company¡¦s ability to respond quickly to change, the damage might
be shifted to other mobile phone makers that use Google¡¦s Android system. As a
result, Samsung may find its leading position strengthened in the global
smartphone market.
It is no accident that Samsung has become a giant in the global electronics
market, where it is running almost neck and neck with Apple.
From the moment the company entered the smartphone market, it worked diligently
to become a market leader and made huge investments in research and development.
Samsung truly followed the adage that ¡§if it¡¦s worth doing, it¡¦s worth doing
well.¡¨
Original design manufacturing was just not enough for Samsung.
This is also why South Korea mobilized the whole nation in support of Samsung¡¦s
growth, while Samsung itself took concrete and practical action to effectively
build a national brand.
The company lived up to the expectations of the South Korean government and it
went on to become a world-class international company.
These days, regardless of where you are in the world, you can see Samsung
advertising. In addition to thoroughly overcoming its Japanese competitors, the
company has not been afraid to take on the world No. 1, Apple.
It should not be surprising that as Samsung¡¦s popular Galaxy smartphones now
rival Apple¡¦s popular products, Apple has launched a series of patent lawsuits
against the company.
The reason for this is very simple: Samsung is Apple¡¦s main competitor, and the
only way Apple management will be able to sleep soundly at night is by defeating
Samsung.
However, trying to warn other competitors in this manner may not be a successful
strategy. The crux of the matter is that Samsung will not just sit around and
wait for a death sentence, so even if its popular Galaxy smartphones are banned
from the US market, Samsung could well be making further changes to the design
of future models in order to avoid those areas where it has been judged to
infringe on Apple¡¦s rights. Once the product bans that may result from the
current lawsuit take effect, further changes will be made to Samsung¡¦s new
products so they can enter the US market.
Samsung is no pushover. The company has its own research and development
capabilities that enable it to develop new growth avenues and follow its own
direction. When necessary, the company will be able to change and engage in
forceful competition with Apple.
This is precisely the capability that is missing in Taiwan. Here, companies lack
the skills that are required for innovation. They are limited and restricted by
their people. They turn only a meager profit, which just barely allows them to
keep living.
Chu Yen-kuei is a lecturer of law at National Open University.
Translated by Perry Svensson
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