Samsung Supply Chain

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

Finally, there are those costs that are common to both global and domestic sourcing. Direct labor and materials costs, lead-time costs, transportation costs and inventory costs are a part of both domestic and offshore sourcing. Transportation costs, inventory costs, and lead-time costs tend to be higher when sourcing globally. On the

us all their manufacturing defects of existing L.L.Bean products at an agreed upon reduced rate,

Question #2-Define the supply chains for the following products from the first source of raw materials to the first customer. A) Big Mac, B) Gasoline, C) Automobile repair, D) A Text book.

Currently a relationship exists between two cell phone models (Alpha and Beta) that will need some serious realignment. To decrease (Beta) and produce more of the (Alpha) model would involve sacrificing profits that could have been made on the more profitable model but also losing the contribution the Beta model made to cover the fixed costs at the factory. This reflects a key principle of opportunity costs.

Apple does a fine-grained job in making the most of their profitability in just about every area. One way which Apple has expand their success is by providing the customers with more selections and possibilities. For example, Apple launched their iPhone 6 and their iPhone 6 Plus, which is a little bigger than the iPhone 6. If a customer buys an iPhone 6 Plus rather than the smaller iPhone 6, Apple makes an extra $84.50. The bigger screen and battery in the iPhone 6 Plus, plus a few other more marginal costs, put an additional $15.50 to the cost of manufacturing the iPhone 6 Plus, but Apple is charging upwards of $100 more for this phone. The two characteristics of the iPhone 6 Plus which rise the cost to produce it are the screen and

As the sections we divided in Supply Chain Design paper, we have five different sections of a restaurant. They are Suppliers, Inputs, Processes, Outputs and Customers. Now we will find out two different measurements for each section.

Evolution of SCM started with manufacturing industry and retailers with construction industry been unable to adapt quickly but Akintoye et al, (2000); Vrijhoef and Koskela, (2000); Dainty et al (2001a) opine that many construction organizations have now realized and increase their interest in SCM concept. This approach is been used in tackling various problems associated with basic construction operations like: inadequate flow of information from the consultants to the contractor; inability to properly evaluate the risk associated with construction task; rise in price competition due to adversarial approach in material sourcing; dishonesty, environmental fear and frustration.

Samsung Corporation has experienced a big loss to the market for instance by introduction of cheap made Samsung Chinese phones and accessories across the market. The introduction has led to the failure of the market of products thereby reducing the amount of revenues. The process has decreased the sustainability across the market therefore a huge impact on the supply chain of the

Another reason for Samsung’s success within the smartphone business is their expertise on handling products’ life cycles. They understood that innovation requires releasing products every year as technology is in constant change. Samsung updates their device line yearly by pushing hardware and software updates while it keeps expanding on its product portfolio. By doing these, the company benefits from benchmarking as they are able to identify all weaknesses from previous releases and find ways to fix them and satisfy

Utilizing its vertical integration, it is able to keep the costs down while also coming out with highly innovative and differentiated products, through massive spending in R&D. Samsung’s expertise in voice/data convergence, wired, wireless communications and core network technologies has produced a family of ground-breaking business communications solutions that are redefining the rules of the game. The brand loyalty is reasonable in the mobile handset market and so it can be said that switching costs for customers are reasonable. In this sense, for Samsung, it is possible to differentiate the product, switching costs for customers are reasonable, and there is huge potential for cost reduction from economies of scope.

The other day, one of my younger cousins came to see me and we had a long chat. At one point, he said that he was contemplating on a technology-based business idea in which he is keen to endow. I asked him to share the thoughts with me in detail. Then he explained, what he wanted to do, how to implement the thinking, approximate cost, budget, tentative loss-profit calculation, marketing procedure and supply chain management system etc. I found out that the proposal is new in Bangladesh and may be feasible if he can run it properly. Then I asked him to prepare a pitch deck for it. He replied, how about the pitch and how to do it. I informed that what you described me for the last half an hour, write it down. It will be a prototype. When you would make a slide with the gist of the prototype, it is generally named pitch. A pitch deck basically is a brief presentation, often created using PowerPoint, Keynote or Prezi used to provide your audience with a quick overview/short summary of your company, business venture and startup. You will usually use your pitch during face-to-face or online meetings with potential investor or clients. According to the famous evangelist and author, Guy Kawasaki, who is also an American marketing specialist and Silicon Valley venture capitalist, a pitch should have ten slides, last no more than twenty minutes and contain no font smaller than thirty points. This is applicable for any presentation to reach agreement: for example, raising capital,

Samsung is able to achieve and maintain its low cost position due to various factors. Samsung has always emphasized on process and production efficiency. The company places all its fab lines and R&D facility at a single site, so that engineers from various departments can come together to resolve any process or design issues as soon as possible. Benefiting from the collocation, Samsung achieved an average of 12% construction costs savings. Also, as seen in Exhibit 7a, Samsung is able to keep its fully loaded costs below that of competitors. The lower cost is mainly attributed to lower raw materials cost, perhaps due to better

Taiwanese smart phone maker HTC Corporation is considering outsourcing manufacturing to other companies to improve its efficiency. Before building its own brand, HTC concentrated on manufacturing low-end smart phones for companies like Apple. However, in recent years, HTC has been under pressure from shareholders to reduce costs because of loss net operating income for the third quarter of 2013. Now, HTC wants to change its strategy; they want to concentrate on the research and development of high-end smart phones and outsource some of their low-end smart phone production to increase their sufficiency and lower the costs. In the smart phone industry, in order to improve efficiency, it is important for

This report investigates the suppliers of the components found on the logic board of the Apple iPhone 6. We find that while most of the product design and software development of this phone is carried out in Apple’s headquarters in California, USA, most of its components were indeed manufactured by companies scattered all over the world. The final assembly eventually takes place in China and Brazil before being shipped back to Apple’s USA offices for warehousing and marketing. A key finding is that Apple reaps quantum benefits from the global nature of the electronics industry and in so doing, increases the speed of its product development while lowering its overall cost of operations.