Now one of the world's biggest producers of computer chips, flat-screen televisions and mobile phones Directors are concerned that Samsung could become an Asian "basket case" if they do not initiate change now.

The South Korean company has become an international brand by being a copycat manufacturer, mimicking technological leaders and churning out products faster and cheaper than others. Unlike Sony's Walkman and Apple's iPod, Samsung has never produced a "killer app" -- a unique product or application that creates its own market.

So now, after overtaking Sony as Asia's most valuable technology company in recent years, Samsung is in a rut. Poor performances by two of its three main businesses -- semiconductors and liquid-crystal display panels -- dragged second-quarter operating profit down 36 percent from a year earlier to $964 million. It was the weakest showing since 2001.

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