Samsung decides to Koh Dong Jin its company’s president who is the developer of S6 and Note 5, the best sellers of the tech giant
The electronics distributor and manufacturer has replaced its president of the mobile communications department, from the 59 years old Shin Jong Kyun to the 54 year old Koh Dong Jin, however Shin Jong will continue being the head of the overall mobile division of the company and will contribute in the growth of the business.
Samsung Electronics Co. Ltd.’s is known for making the best smartphones in the global market is making Koh Dong Jin the president, as he helped in the development of the company’s known bestselling S6 and Note 5 smartphones. The company is making changes in its senior executive’s department mainly because it has been facing problems in generating a good amount of profit; it made the least profit in its four years of business. This recent change decreases Shins influence and power on the business as the company has huge competition from Huawei and Apple. The shuffling of the senior management is also a test for the chairman Lee Jae Yong, who took over after his father Chairman Lee Kun Hee passed away in 2014.
The economics professor from Hansung University, Kim Sand-Jo said, “While it’s true that Shin delivered remarkable performance in the past, it’s indisputable that the Galaxy S6’s results fell short of expectations so a new leader was needed, today’s appointments appear to acknowledge the need to develop a management system that can more proactively respond to challenges from Xiaomi and other Chinese companies.” Shin is given huge respect and credit for the company’s success through the fabulous smartphones he helped manufacturing, which achieved sales of almost 320 million units just in 2014. After Apple launched its IPhone6 and IPhone 6 plus, the electronics company faced issues in Chinas market, because Apple became more dominant in the Chinese market through its smartphones. Other competitors such as Huawei and Xiaomi also contribute to the defeat Samsung is facing in China.
The shuffling of the senior management also includes Yoon BooKeun who is now the division chief of TV and appliances from day-to-day operations of the department. The galaxy maker is clearly changing its business strategies for the purposes of more success, starting from its management. Shin has been in charge of the mobile department of the company since 2009, and was making huge success for the company until recently where a decline in sales was witnessed. This is not the only thing the company is making effort to change it recently reduced it prices for the expensive products in effort to increase its sales again, but that hasn’t proved to effective so far.