Vertical Integration of Samsung
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Vertical Integration of Samsung Electronics Group.
Samsung Electronics Group (SEG) consists of several sister companies in a vertically integrated relationship. Vertical Integration is the conglomeration of two or more firms, under a single control, with operations that undertake the necessary design and manufacturing processes. Samsung therefore has internalized its operations, producing the necessary components for its products in-house.
Samsung Electronics Corporation (SEC), the flagship company of the group, produces a wide range of general electronics, from audio and video products to computing equipment. These are essentially manufactured components that are then assembled together.
Samsung SDI, formerly known as Samsung Display Device (SDD), was famed for its display specific focus. With the changing business environment, SDD was reborn into Samsung SDI, and is now a digital mobile company, developing digital products with world class display technology. It is the second member firm of SEG, producing colour picture tubes (CPTs) and colour display tubes (CDTs) which are components for SECs production of colour televisions and computer monitors.
Samsung Electro-Mechanics (SEM), the third member firm is a specialized, synthetic components manufacturing company, intent on becoming the worlds top electronic parts maker...