Samsung 2006 Annual Report Download - page 11

We are creating new product value by discovering latent market needs and emotional factors linked
to products. At the same time, our intangibles (brand, design, and marketing) are improving to make
customers more deeply impressed with and prouder to own our products. We are elevating our status
as a premium brand so that we can lead new market segments. We are also leading competitiveness in
convergence products with close cooperation among our businesses.
Building a platform for sustainable growth
We will maintain our creative leadership to maximize profits in 2007. In our mainstay product lines
(memory chips, LCDs, mobile phones, flat panel TVs), we will remain the most competitive and develop
our competitiveness further by introducing new concepts first in the market and by controlling costs.
In addition, our printers, Mobile WiMAX and other future growth engines will be made competitive as
quickly as possible, while our next-generation Blu-ray products and system-on-a-chip devices will be
fully established in the marketplace. In home appliances, we are also bolstering our competencies in
premium products and securing quality competitiveness in this area.
Internalizing operational efficiency
Competition among companies is both severe and relentless today, while falling retail prices and an
appreciating Won currency weaken our competitiveness. This is a major problem that simply must
be overcome for Samsung Electronics. Therefore, now is the time for us to secure the ultimate cost
competitiveness and the speed to address changes in the business environment ahead of everyone
else. Our price structure is being streamlined so that we can turn a profit under any condition, and highly
efficient work processes are being adopted. We are also building a superior supply chain management
system that cannot be imitated by our competitors.
Our R&D effectiveness and speed are being raised through joint research with external institutions,
and we aim to secure technological leadership by being the first to develop core technologies.
We are fostering a work atmosphere built on trust and harmony. Our organizational culture encourages
employees to take on challenges without the fear of failure, while changing and improving constantly.
The group of core personnel continues to expand and specialists are being trained for each area of
business. The speed of decision making continues to accelerate as well.
We understand that the trust and loyalty of customers, business partners and shareholders alike
are the greatest force that can transform us from being a world-class company to one of the world-
leading companies. Aware that generating maximum profits is the only way to increase shareholder
value, we pledge to work hard in order to be financially strong in 2007 and fulfill our social obligations as
a corporate citizen.
Jong-Yong Yun
Vice Chairman and Chief Executive Officer
Samsung Electronics Co., Ltd.
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