Samsung and LG Locked in Competition

Korea’s top-tier high-tech companies, Samsung Electronics and LG Electronics, are locked in a war of negative publicity strategies.

The competition between the two archrivals has been stiff in the past but already this year spokesmen of the two companies have clashed several times in wide-ranging battlegrounds.

In Korea, the standoff flared up again last week when Samsung invited reporters to its telecommunications research and development (R&D) center in Suwon and revealed the world’s first push-to-all (PTA) phone.

The invitation was attractive as the research center, which has played a key role in developing Samsung’s glittering array of fancy phones, had never before opened to the public.

Moreover, Samsung’s unveiling day of Feb. 24 coincided with the opening day of LG’s integrated cell phone R&D center, which was attended by LG group chairman Koo Bon-moo.

The ‘’coincidence’’ raised the ire of LG, which claims that Samsung intentionally sabotaged their long-awaited research center opening ceremony.

In response to LG claims, Samsung argued it had also had the date for the opening of its R&D center and PTA phone set months in advance and then accused LG of foul play.

``LG claimed it established Korea’s biggest research center for cell phones. But its scale is far smaller than our communications lab,’’ a Samsung spokesman contended.

Market observers believe the uphill battle between the two giants will continue for the time being with no side changing its position.

From the beginning of this year, the drums of war resounded as Samsung and LG readied themselves for public relations onslaughts.

When Samsung announced it had developed the world’s first motion-cognitive handset on Jan. 12, LG countered that such technology is widely used and that it already has a model with that function.

Samsung’s Sonoma notebook, the Sense X20 which adopts Intel’s next-generation mobile chipset Sonoma instead of the traditional Centrino, also came under LG’s fire on Jan. 18.

``LG and Toshiba also began to sell Sonoma PCs this year but delayed public announcement because of Intel’s embargo of Jan. 19. So how can Samsung’s Sonoma PC be the world’s first?’’ an LG spokesman asked.

On Jan. 31, LG took the wraps off its slim 32-inch cathode ray tube (CRT) TVs and hours later Samsung issued a press release that it too had developed the same product.

Early last week, Samsung disclosed its new combo washer and dryer, and LG followed suit with similar all-in-one home appliances on the same day.

Overall, I see these claims as a strategy for LG to overtake Samsung while the Samsung looks to pull away from the rival LG.

One another level this competition between Korean groups is not unusual. For decades, Hyundai, the now defunct Daewoo, and Samsung's founders fought bitterly for top position and status in Korea.

Comments

Popular posts from this blog

25 Insights from Korea Facing, “Secrets for Success in Korean Global Business”

Best Market Entry Practices 2025

North Korea’s Leader, Kim Jong Un’s daughter, Kim Ju Ae, and what it signals about the future of North Korea