Li Zaiyu was arrested and criticized for Samsung's systemic crisis!

With the succession of Samsung Electronics’ successor and headman, Li Zaiyu, being officially approved by the Korean court, this has also sparked a series of internal and external problems and transition challenges hidden within Samsung Electronics in recent years. As the first person to be arrested for alleged bribery since the founding of Samsung Electronics, Li Zaiyi is suspicious of the future succession and control of Samsung Electronics.

The arrest of Li Zaiyu, the leader of the company, became a fuse and became an important turning point for Samsung Electronics in the global consumer electronics industry.
Since then, this has also caused a series of contradictions, hidden dangers, and challenges within Samsung Electronics, which have been hidden in high-speed development in recent years. This has led to an explosion: the complacency and pride of the company's internal management team, the main industry’s technological innovation iterations have frequently encountered ceilings, and external competitors have pressed harder. The brand brought by the rejuvenation of consumer demand is not keeping up with the changing pace of the times.
It is more appropriate to sum up Samsung Electronics’ performance and competition in the global market in the past year. First of all, Samsung Electronics’s core mobile phone business exploded suddenly and staged a series of plots such as recalling and stopping production for sale in a short period of time; then it took up more than 20% of the global TV market share in the color TV industry, with the help of the LCD vertical industry chain going up for the future. The direction of development has fallen into confusion; at the same time, the white-electricity business, which has been pursuing low-price and large-scale expansion in the global market, has faced challenges such as anti-dumping lawsuits for product quality crisis; traditional advantageous projects such as memory and computer IT businesses have encountered global industrial decline. .
Li Zaiyu, who was the chief executive and successor, was suddenly arrested, causing the market outsiders to pay attention and worry about Samsung Electronics. However, this incident will not immediately cause its internal business crisis and external market deterioration. On the one hand, Li Zaiyu was investigated by the prosecutors of South Korea, the court refused to arrest for the first time, and now the court agreed to approve the arrest, which took more than a month to repeat. In the process, Samsung has already made its worst plans to deal with it. On the other hand, for Samsung, a global company that has operated for several decades, the stability of its operating system and the completeness of countermeasures, Can deal with this kind of crisis. In the short term, there will be no rapid deterioration.
However, for Samsung, which is about to establish its 80th anniversary, the first person arrested by the court for allegedly bribing the current president and his girlfriend, Li Zaiyu’s sudden arrest remains the next development of Samsung Electronics, and the market. The management and brand reputation have brought a series of unpredictable shocks and influences. They have not even ruled out a chain reaction of commercial partners and consumers in the market, causing panic and refusal to buy Samsung and other negative effects. Since the news of the arrest of Li Zaiyu in the early morning of February 17, Samsung's share price has fallen, and Samsung’s market value has continued to shrink.
First, it detonated the confidence crisis of Samsung and its brands. The direct reason for Li Zaiyu’s arrest was that he was accused of bribing the current president of the government and his girlfriends for his own personal interests in Samsung. This is typical of unfair competition. It is not only the crisis of Samsung's market operation, but also the confidence crisis of external market businesses and consumers for the Samsung brand. This will be a subtle process. The end result is the concern of market partners and consumers about the future development of Samsung, which will increase vigilance in the course of daily business cooperation and gradually shrink cooperation and trust space. In order to avoid the business deterioration and uncontrollable factors caused by the arrest of the Samsung chief. This will be a long-term vicious circle.
Secondly, the crisis of business management and management of Samsung was attacked. For any company, the arrest of the chief is a "great thing." Not to mention the fact that for a national, family-owned company such as Samsung Electronics, the number of signals released by the chiefs is multiple. On the one hand, the government must adopt more stringent market supervision on such large companies as Samsung, which will inevitably lead to the orderly operation of Samsung's original market and frequent chaos of competition; on the other hand, with the arrest of the chief, it will trigger Samsung. A large number of internal senior executives have been surveyed and responded to the survey, which will create a stable and sustained internal management team. Although Samsung is a cross-border company, its business decision-making power is highly concentrated in South Korean headquarters and is in the hands of Li Zaiyu’s family. Therefore, it is difficult to get rid of Li’s control.
In addition, bring Samsung's market operation crisis. The most intuitive impression that the market and consumers have had on the arrest of Samsung chiefs is that entrepreneurs make mistakes and violate the laws and regulations of the country. They are disgraceful and not worthy of respect. The most direct result of this is the lack of trust and recognition of companies and brands. In fact, the investigation of Samsung’s overarching bribery initiated last year has not only triggered South Korean citizens’ resentment against Samsung, but also caused confusion among Samsung’s internal staff. After this kind of circumstance, it is easy to have negative or even panic in the market after the diplomatic exchange. As a result, the Samsung TV, mobile phone and other main business market operations, causing no small fluctuations. Competitors will also take the opportunity to increase their market share of Samsung's positive snatch.
In addition, Samsung’s internal transition puzzle was exposed. Although in the past few years, Samsung’s main businesses such as mobile phones and televisions have maintained a strong momentum of development in the market and have consistently ranked first in the industry. However, starting last year with the explosion of new mobile phone products and the lack of leadership in the next generation of color TV display technology, there is also a series of proud and complacent hidden inside the company’s internal management team. Problems such as lack of morale and lack of innovation began to surface. It can be believed that the series of poor performance of Samsung Electronics' main business in the market is no exception. It must be the spread of internal and external issues, and it will drag down the competitiveness and combat effectiveness of Samsung in the global market in the next few years.
As the saying goes, the house leaks every time it rains. For Samsung Electronics and Li Zaiyu, everything has returned to a new starting point and everything is facing an unknown development challenge. However, in the face of the ever-changing external market competition and the hard-pressed competitors, where should we go?

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