Competitive Strategy Of Samsung

Decent Essays
Samsung electronics has come a long way from being the world’s leader in semiconductors to becoming a top competitor in the mobile handheld industry. Samsung’s dynamic capability frameworks and resources allowed the company to gain competitive advantage and achieve growth in many different markets. Some of these capabilities and resources that led Samsung’s success include; the ability to recognize opportunity through a visionary management team, intense acquisition of technology and learning, product and process innovation, a fluid manufacturing and assembly system and the ability to develop partnerships and joint ventures. In the midst of the global financial crisis, the Korean currency’s value, won, had fallen tremendously. Samsung’s management team saw this as an opportunity to start outsourcing from China, where they manufactured LCDs and Mobiles for a fraction of the price. By 2011, Samsung had the largest Mobile share in China. They decided that by moving out they would understand the surrounding markets (Zahou, 2015). Chairman Lee commissioned a task force team to make in-depth market research to find out the needs of the market and to study the foreign trends. Feeling limited with the trends of the Asian…show more content…
One would be through a cost-leadership where the key elements include tight control of overheads and R&D, process innovation, scale-efficient plants, outsourcing and an efficient design for manufacture. In the other hand, differentiation sets an emphasis on branding advertising, product design and quality, service and new product design. As a very successful company in which has been around since the late 1930’s, Samsung has repositioned and used both tactics, cost leadership and differentiation still present today. The combination of both strategies, has led them to adjust to the changing market environments and ease the entry to new
Get Access