After Verdict, Assessing the Samsung Strategy in South Korea

The following is an excerpt from an article in 

The New York Times
Monday, September 03, 2012

After Verdict, Assessing the Samsung Strategy in South Korea

By CHOE SANG-HUN

SEOUL, South Korea — When a jury in San Jose, Calif., ordered Samsung Electronics to pay $1.05 billion in damages for violating Apple’s patents for the iPhone and iPad, it did more than decide who had infringed upon whose intellectual property. To South Koreans, the legal battle highlighted the strengths and weaknesses of both Samsung and their economy in general.

“The ruling makes us reconsider the brand value of Samsung because it depicts Samsung as a copycat,” said James Song, who monitors Samsung for KDB Daewoo Securities in Seoul. “But a copycat or not, what Samsung has done with its smartphones was a brilliant move.”

“Look what has happened to companies like Nokia, Motorola and BlackBerry, which didn’t do as Samsung did,” Mr. Song added, referring to competitors whose failures to adapt quickly to the smartphone boom driven by iPhones have drastically reduced their market shares. “Samsung may lack in innovation, but right now, no one can beat Samsung in playing catch-up.”

For months, the South Korean media have watched avidly as Samsung, the world’s largest technology company by sales, clashes with Apple, the world’s No. 1 company by market value, over patent lawsuits in various countries.

Calling Samsung South Korea’s biggest, most profitable and most globally recognized brand barely explains the intense and often mixed emotions the name evokes among South Koreans.

In Samsung, they see the crown jewel of their country’s transformation from a war-torn agrarian society into a global technology powerhouse.

Once an assembler of clunky transistor radios, Samsung is now the world’s top seller of smartphones and high-resolution television sets, as well as memory chips and flat-panel displays that allow those devices and others to store and display data.

Japanese companies have beaten rivals to the market with hardware innovations like flat-panel televisions and high-end mobile phones. Samsung waited for the others to test the market, and when it determined the time was right, it joined the fray to cash in.

Samsung’s strategy was to build something similar to another company’s product but to make it better, faster and at lower cost. When it pounced, it flooded the market with a wide range of models that were constantly updated with incremental improvements at a speed its rivals found hard to match — a strategy best illustrated by its smartphone business. Heavy investments have not been a problem; it once secured low-cost loans from a government-controlled banking sector friendly to big businesses and now draws on its own coffers, which are sloshing with cash.

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Garden & Gun Magazine Survives in an Ailing Industry

The following is an excerpt from an article in 

The New York Times
Monday, September 03, 2012

Garden & Gun Magazine Survives in an Ailing Industry

By CHRISTINE HAUGHNEY

CHARLESTON, S.C. — Among the many magazines that were battered by the recession, few survived such a precarious financial state as Garden & Gun.

In 2009, the two-year-old Southern lifestyle magazine lost financial support from its first publisher. Its employees, many of whom had relocated from New York City to work here, were left with dwindling buyout packages and the promise of freelance pay. Real estate developers could no longer afford to buy advertisements, and some new prospects said they would not give a cent to the magazine until the owners took “gun” out of its title.

David DiBenedetto, the editor in chief, recalled that when the magazine’s color printer broke, the staff did not have the money to replace it for two months. They had to print out proofs at a nearby Kinko’s.

“You didn’t know if you would be there the next week,” Mr. DiBenedetto said as he picked over a lunch of peach soup, fried green tomatoes and catfish at Charleston’s Husk restaurant. He and his wife moved here from New York so he could work at Garden & Gun. “You just didn’t know if the lights would be on.”

It did not help that Garden & Gun’s spare layouts and meandering prose differed radically from the shorter, flashier articles many magazines were moving toward to compete with Facebook and Twitter.

But now, its provocative name and contrarian approach seem to be paying off in a struggling magazine industry. The bimonthly won a 2011 American Society of Magazine Editors award for general excellence, and its editors have a three-book deal with HarperCollins to publish a Southern guide, a collection of dog columns and a cookbook.

With advertisers like Audi, Le Creuset and Brooks Brothers on board, the magazine’s owners forecast that it could be profitable for the first time this year. While circulation is slipping across the magazine industry, Garden & Gun’s circulation grew to 237,837 subscribers in December 2011 from 210,172 the year before, according to the Audit Bureau of Circulations.

The magazine, based out of a 200-year-old former pharmacy on Charleston’s historic King Street, was founded as what Jessica Hundhausen Derrick, its vice president and brand development director, described as “a love song to the South.”

It included articles about backyard gin makers, woodworkers crafting chairs from whiskey barrels, and Southern produce like Georgia rattlesnake watermelon. Among the lighter pieces by authors like Roy Blount Jr., there were richly detailed articles like the one from a lifelong friend of Eudora Welty describing how the author feared that if her dead mother saw her cook, “she’d weep with shame.”

And to feed advertisers’ anxieties, nearly every issue featured unapologetic articles in praise of hunting. There were essays on quail hunts, hunting clubs and hunting dogs, often written with an emphasis on land preservation and basking in sumptuous photo spreads to rival Vogue or National Geographic.

For more, visit www.nytimes.com.