Many companies begin by specializing in producing a single product until they become recognized and expand into other products and grow into a large company with variety of stocks for sale. One of the best examples is Nokia, a company that manufactured phones with the Symbian operating system, it was one of the most recognized worldwide until the era of smartphones began and the Android And iOS operating system became more popular, this put the Nokia company aside because it did not take advantage of the opportunity to expand and create other patents, so its sales declined and later it had to be sold.
Samsung is a very popular company with products ranging from electrical appliances to smartphones. Presently, the company has been going through a rough patch after it suffered losses with its’ Galaxy Note 7, a lot of people made a joke of this incident on the internet with memes and GIFs mocking the product but Samsung lost a serious amount of money and apart from the money already spent in creating the product, they also had to refund money back to customers who were affected by the incident. Now, Samsung hopes to bounce back with a new investment, although it already produces a wide variety of electronic equipment, it still needs to expand its catalogue in preparation of the future, the sale of its smartphones alone will not be enough to recover all its losses and for this reason it is looking towards a new alternative for the market.
$8 billion dollars on Intelligent Automobiles
Samsung has invested around 8 billion dollars in the automotive industry, investing this huge amount gives Samsung some assurance that its recovery will be of great value. Investing so much money means that they have an edge over other companies that do not have the finances to invest in engineers, developing components, R&D and prototypes to begin with. This has given some sort of concern to start-ups that wanted to develop their own technology from scratch, since a company as huge as Samsung has commenced at a point way beyond what they are capable of.
Samsung made use of this $8 billion dollars to purchase an American company called Harman that specializes in automotive design and connectivity between vehicle components. Samsung is a smart company, it has not only invested $ 8 billion in a US company for its automotive technology, It will also make use of the sound technology that this company has developed for automobiles in its new Galaxy smartphones,
Samsung’s new Galaxy S8 will be on sale for next year and it will feature Harman technology.
Renault Samsung Motors
After the purchase of Harman, there have been rumours on how this company will be run. Harman’s production is based on the sale and improvement of vehicles that up till today have not gained much popularity, but it will invest all its experience in Samsung and has already equipped more than 30 million cars with devices bearing its’ brand name, some of its clients include companies like General Motors and Fiat Chrysler, Renault Samsung Motors may become popular with these new additions.
Harman’s experience has shown that it is a company that can position Renault Samsung Motors higher than we can ever imagine with implementations and development of navigation systems, internet connectivity, vehicle safety and entertainment. Renault Samsung Motors will undergo a change in its staff and system of management, this will commence when Harman installs its production equipment and implements its production system. perhaps both companies may still have to discuss the issue but it’s possible they come to a 50/50 agreement on the use of their systems and equipment.
A step closer to the competition
Samsung has invested a huge amount of money in order to guarantee its success and be on the same level with its competitors, many companies already have this kind of implementation and are only just modifying and expanding what they already have, this gives us a lot to speculate about on Samsung’s first installment in the smart car market. The $8 billion dollars invested will be put to the test and Samsung would have to compete with greats like Tesla who have one of the best developed smart cars in the market.
Samsung is not the only company betting on a new technology that has not yet been exploited on a large scale, there are other big companies that have been working in secret to take smart car technology a step further; Google has long been developing vehicles without drivers, Apple has been working for a long time on smart vehicles and these are companies that also manufacture smartphones, perhaps this is the top one among many patents available in the market. Samsung should be careful, investing heavily and not studying the market adequately could result in a loss like that of its Galaxy Note 7 which would even be a bigger failure.