Samsung Organization Split

Samsung this morning said it would take the major step of reorganizing itself into two major divisions in a bid to improve its competitiveness. The Korean electronics giant says it will divide itself into a consumer group, which will produce the company's fully-assembled products such as appliances and cellphones, as well as a second group for its strictly part-related businesses such as displays and flash memory.

The move is aimed at minimizing internal competition, which would often see a pure parts division making products for third parties that directly conflicted with those made for Samsung's own finished devices.

Samsung's moves come as a defensive measure in the wake of its holiday quarter, which is likely to have been deeply impacted by the poor world economy as fewer people buy non-essential goods like HDTVs. During the summer, the company's earnings were cut in half despite the relatively healthy state of the economy at the time due to price cuts and other factors fueled by competition.

By Electronista Staff