When the ship is not good enough to turn around, perhaps giving up the big ship and using a lifeboat to escape is a faster and better choice. After Philips, Samsung also began to escape the long-awaited price war in the LED industry. According to the Samsung statement released by Reuters yesterday, Samsung has decided to stop the LED light business in all markets except South Korea, which will focus more resources on its core business areas, and continue to maintain LED component business only in the LED industry. Active. Thinking about Samsung's delisting When the author got the news for the first time, I felt that many people would be surprised by this because Samsung LED products have a great reputation in the lighting industry, and they have remained remarkable in LED components. Position, entering LED lights and lighting seems to be in the water, and is most likely to break into the four major lighting, the Korean giant can stand out because of its huge marketing budget, capable of developing consumer-centric products and from TV and LED expertise acquired by the mobile phone business. Just last April, Samsung also held a Samsung new LED lighting product launch conference in the future. At the meeting, Samsung LED lighting five new LED lighting products were released: two bulbs, MR16, PAR30 and lamps. Just as everyone imagines that a company like Samsung will be gentle in entering the lighting industry, and this news broke out. From the recent period of time, Samsung seems to be following Philips, and believes that the global LED retrofit lamps are highly commercialized and low-margin, which is not worth the candle. Philips recently decided to spin off its lighting division, focusing on healthcare, and seems to have shown that in the LED bulb consumer market, large companies struggle to compete with smaller Asian competitors because of their aggressive vicious nature of price competition. Because Samsung is a large-scale enterprise with many employees, office space and marketing needs, all of which makes large enterprises spend more, which inevitably requires large enterprises to have more profits to support the development of enterprises. The decline in product prices has also reduced profit margins, coupled with the industry's internal consumption, affecting the industry's profit level and new product development capabilities, technology input, resulting in a decline in industry competitiveness. If large enterprises hit the price war, this will certainly narrow the company's profit margin. In the long run, the price war will cause the company to lose more benefits. Professor Lu Xiongwen, deputy dean of the School of Management at Fudan University, once said that the price war is getting more and more fierce. It only shows that the company lacks real competitiveness. In an extensive competitive environment, enterprises cannot provide more value to customers and can only cut prices. The LED industry is now undergoing a price war as a whole, indicating that the LED industry is experiencing a new round of reshuffles due to overcapacity. The author believes that the Chinese LED industry should now think slightly about how to develop and be more suitable for China. National conditions. Samsung's adjustment of the LED business is only to sort out the spider-like shareholding structure? Samsung this year is worthy of the event, according to media reports, Samsung Electronics is currently experiencing a decline in performance. In the second quarter of 2014, Samsung Electronics decreased by 8.9% year-on-year, and net profit fell by 19.6% year-on-year. Performance analysts also expect Samsung Electronics' operating profit to hit its lowest level in the third quarter of this year in the third quarter of this year. In addition to the business decline, Samsung Electronics and Samsung Group are undergoing personnel and business adjustments. As the chairman of the board, Li Jianxi, was admitted to hospital due to a heart attack, the Li Jianxi family, represented by his only son, Li Zaixi, is stepping up the control of the Samsung Group. Li Jianxi is Samsung's undisputed spiritual leader. In his more than 20 years of taking over Samsung, Samsung has grown about 40 times and become a global company in the fields of mobile phones, television and semiconductors. Also under his leadership, the Korean electronics giant has captured the glory of Japanese companies in this field for 30 years, and has built a stunning vertical integration empire. Although Li Jianxi’s health turmoil has subsided on the surface, some Korean media pointed out that the secret operation of the Samsung family’s inheritance of Li Jianxi’s wealth and corporate control has not stopped. Since 2013, Samsung has promoted the restructuring of its subsidiaries. At the end of March this year, Samsung announced the decision of its subsidiary Samsung SDI and the first raw material producer to merge, aiming to build a large-scale material with an asset size of 15 trillion won (about 14.7 billion US dollars) and annual sales of 10 trillion won. And parts companies. This is also seen by the outside world as consolidating the control of the successor Li Zaijun in charge of the business. Some observers expect that the restructuring of the Samsung Group and the simplification of its capital structure will be further accelerated. It is expected that the current vice chairman of the Samsung Group, Li Zaijun, will hold a majority stake in the newly formed holding company. By then, the holding company will control Samsung Electronics Group, Samsung Manufacturing Group, Samsung Theme Park business, Samsung Resort business and so on. Through the spider-like shareholding structure, in the future, the Samsung Group will form a pattern in which the three brothers and sisters are in charge of different businesses. Among them, Li is in control of electronic and financial subsidiaries, Li Fuzhen is expected to control the service industry and chemical subsidiaries, and Li Xuxian will control the clothing and advertising subsidiaries. Industry insiders expect that Samsung Group plans to completely eliminate the phenomenon of subsidiary chain holdings before 2016, and comprehensively reorganize 74 subsidiaries with Samsung Life, Samsung Electronics and Samsung products as the core. However, considering the health status of Li Jianxi, this plan is likely to be advanced. However, there are also outsiders who have doubted that Li Zaijun’s lack of experience as a leader has not shown leadership qualities and entrepreneurship like Li Jianxi. However, by contrast, the more pressing issue is the performance ceiling of the increasingly expanding Samsung Empire. In the first quarter of this year, Samsung's operating profit has fallen for two consecutive quarters, and the global market share of core business smartphones has fallen for the first time in four years. In addition, how to get out of Apple's patent lawsuit, get rid of the operating system is subject to Google's situation, and how to develop Samsung's non-electronic business, is in the face of Li Zaiyu's challenge. How to innovate after Samsung LED lighting retreats to the local market? In the New Year speech at the beginning of this year, Li Jianxi, who has always been in danger, has issued a warning calling on employees to adopt a new mode of thinking and start the transformation of Samsung. He stressed that Samsung must get rid of the business model and strategy of 5 years and 10 years ago, as well as the hardware-based model, and must promote innovation with greater intensity. Only in this way can Samsung continue to lead the industry trend. If it is not innovative, the same industry will continue to compete for homogenization. Changhong’s past is a vivid case. From 1996 to 2003, Changhong Color TV announced many price cuts in order to suppress other enterprises, but Changhong continued to face inventory. The backlog of pain. In 2001, with the advent of the meager profit era of the color TV industry, the average profit of the whole industry has dropped to 2-3, and the color TV industry is facing overall losses. At this time, Changhong has faced long-term losses. In 2003, Changhong was sued on charges of dumping overseas, and its low-price strategy was questioned internationally. In the price war for many years: consumers always take a wait-and-see attitude, expecting Changhong to cut prices but find that prices are reduced after purchase; dealers' profits are greatly reduced, and even many dealers refuse to sell Changhong; Changhong itself is almost different in price and cost. Few, the profit is limited, no doubt, Changhong has a taste of failure in the price war. At present, Samsung Electronics has 286,000 employees worldwide. In 2008, it began to set up domestic (Korea) and overseas organizations. After 2010, overseas employees continued to increase. Most proud of it is the R&D staff. According to the Samsung Electronics Public Relations Department, among the 286,000 employees, 69,300 are R&D personnel, of which 6,400 are Ph.D. Moreover, Samsung has adapted to local conditions. Because of its small land area and lack of resources, South Korea has chosen globalization as its development direction. This is also one of the cornerstones of Samsung's success. Today, Samsung Electronics has 220 locations in 80 countries, including sales, manufacturing, R&D, and design, including 38 manufacturing companies, 6 design centers, 34 R&D centers, and 15 regional headquarters. With such a strong ability, Samsung will never let go of the LED market with such a broad prospect when it retreats to the local market. The author believes that the sharpening of the knife is not wrong. In April last year, Samsung also held a new Samsung LED lighting product. The conference, LED lighting five new LED lighting products, it can be seen that for the low-cost competition of products, Samsung is more inclined to the innovation and progress of industrial technology, a small step forward, there will be an unknown situation. I hope that when the Samsung LED industry is once again deployed globally, it will be the time when the new LED technology is released.