SAGEM was a main French firm occupied in communication systems, defense electronics, and user electronics. Started in 1924, initially Sagem concentrated in tool manufacture &mechanical engineering.At the beginning, it chose entering the defense sector. The firm in 1942 made its foremost venture into telecommunication with the earliest telex printer, even thought was mainly a defense-oriented firm during the firstly few eras of the post-war period. This majority emphasis upon the military division stays for numerous years as soon as the exit of Marcel SAGEM’s creator.
- In the 1980s, SAGEM’s response to the recently – obtained fax machines by allocating Japanese fax machines whereas acquiring its own technology permitted it to immediately update and acquire market share as a main player in telecommunication.
- These products included a rising share of SAGEM’s proceeds over usual defence sector. In the 1990s, the company extended into automotive systems, growing into a big provider of this sector.
- Beginning in 1997, the mobile phones sales increased extremely. SAGEM quickly became one of the globe’s leading producers of GSM handsets, in addition to the unquestionable leader in the French market, at some point holding approximately 50% of the market.
Growth in telecommunications
By the end of the era, SAGEM was an extremely profitable firm, having net profits reaching the FFr 1 billion mark in 1999. SNECMA & SAGEM in 2005 united to establish Safran. Mutually, the firms concentrate mostly on security,aeronautics, & defense. The communication & mobile telephony business were turned off as 2 independent units: MobiWire & SAGEMCOM
- Its emphasis on research assisted SAGEM to act onto the advent of the fax machines that had firstly started in Japan & brought an unexpected end to the control of the expensive telex machine.
- Instead of reacting with the valuable improvement of its own product as a one-on-one corresponding item to challenge this latest technology, whereas also being keen to preserve its high-up position in the telecommunication segment, SAGEM chose to take up another method by discussing a distribution bond with Japanese electronic business Murata.
- In this contract, in Europe SAGEM promoted numerous of Murata’s fax machines, along with to alter these machines to the requirements& specifications of the European marketplace. It is used in the distribution procedure to aid growth of own fax machine technology of SAGEM and afterward come into the market place with its own product variety.
SAGEM quickly became one of the globe’s leading producers of GSM phones, along with the undeniable leader in the French market, maintaining almost 50% of the market.