Samsung stresses partnerships over M&As

By Kim Yoo-chul

Samsung Electronics has put more emphasis on solidifying relationships with vendors in the mobile and enterprise segments, rather than pursuing mergers and acquisitions (M&As).

This strategy is because the smartphone industry has become saturated, with cheap Chinese products flooding the market.

Samsung officials said Monday that the company's handset unit would not pursue volume growth, but would introduce programs that best suited mobility solutions.

“Talks about Samsung’s plan to acquire BlackBerry of Canada don’t make sense,” said an official at a Samsung technology affiliate.

“What we are doing now is to win over the enterprise and consumer audiences by putting much more competitive elements into Samsung devices.”

Another Samsung official said its handset division had become more selective about acquisition proposals from the Samsung Future Strategy Office’s M&A Division because boosting vendor partnerships was the key to enhancing the handset business.

“How Samsung gets loyal and notable allies is crucial. Expanding its volume comes next,” said another official.

To that extent, Samsung Electronics recently introduced programs called Samsung for Enterprise, Samsung Knox Enterprise Mobility Management (EMM) and the Samsung Enterprise Alliance Program.

“Samsung is broadening its horizons through a range of key mobility partnerships,” the official said.

“For consumers, Samsung is caring more for mobile carriers and key distribution channels such as Suning of China and Best Buy of the United States to expand Samsung Experience Shops.”

“These efforts will help Samsung boost its brand recognition.”

Samsung has expanded partnerships with Microsoft, SAP, Oracle and International Business Machines for mobile payment.

Samsung announced plans with SAP and Microsoft to offer a set of enterprise mobility services via its mobile devices.

Because these international companies had experience in handling content and systems, such partnerships would help Samsung get a greater share in the Internet of Things (IoT), officials said.

They said Samsung Electronics would be able to sell more hardware devices embedded with such customized solutions, they said.

But Samsung needs to address how the company will better manage companies’ different interests.

“As Samsung is one of the few that can guarantee output commitment, better pricing and on-time delivery, mobile firms are asking Samsung to provide exclusive versions, which Samsung can't easily accept as it pushes a strategy satisfying multi-vendors,” another official said.

For example, Oracle tentatively agreed with Samsung to run a joint experience booth at this year’s Mobile World Congress in Barcelona.

However, the two companies failed to make an official announcement because Samsung was reluctant to allow a certain partner to promote its services inside the Samsung booth.