Samsung Case Study Essay

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.

1. Does Samsung have a competitive advantage? If so, how are they creating added-value compared to industry competitors? Make sure to quantify your claims. (In answering this question, you will find helpful information in exhibits 6-7k (but not only there)).

This essay attempts to identify and analyse Samsung’s key features in their operations management. Operations Management is defined as the process where resources, flowing within a defined system (Kumar & Suresh 2009), are combined and transformed in a controlled manner to add value. These incorporate elements such as products, processes, technology, and equipment or quality control systems (Garrido, Martín-Peña & García-Muiña 2007, p. 2119). In addressing these elements the essay wishes to capture, which of these influence Samsung’s abilities successfully to obtain their competitive priorities (Garrido, Martín-Peña & García-Muiña 2007, p. 2120) and process strategies.

In  the  next  section  we  will  analyze  the  level  of  competition  within  memory  industry  based  on  Porter’s   model, Samsung's competitive advantage and its sustainability considering the current market situation.  3. Analysis:  Considering  Porter’s  model  as  a  framework  to  analyze  the  level  of  competition  within  DRAM  memory  business,  the  threat  of   new   entrant  is  high  compared  to  the  threat  of  substitutes  and  established  rivals in horizontal competition.  If  we  look  at  rivalry within  the DRAM industry between established  players,  Samsung  has  a clear  advantage  over  its  competitors.  Samsung  is  the   market  leader  in  DRAM  memory  business. It  has  a wide  range of products and its products has a higher brand value.  Threat  of  new  entrants  is  high  as  Chinese  competitors  have  easier  access  to  large  pool  of  local  engineering talent and have a growing market  for these DRAM chips. The  government is also  providing all  sorts  of  assistance, like subsidized  land, for  the initial setup. Samsung has several options to  deter  the entry  of  new  Chinese  competitors.  One  option  Samsung  have  is  to  continue  to  explore  and  increase  market  shares  of  flash  memory  markets  which  is  a  new  and  growing  market.  Samsung  can  also  take  advantage  by  lowering  the  price  of  DRAM  chips.   This  would  force   a  price  war  and  drive new

The company based its success on 3 pillars of Strategy in the field of Quality, Synergy and Internationalization upon the New Management under the leadership of Lee Kun-Hee. The new management was focused on achieving Quality over Quantity, Low cost Products to Differentiation and Cheap Wages to pioneers in Technology and Branding . The key areas where the company focused were:

The purpose of this essay is to discuss the extent of how effective management and managing has evolved in a contemporary organisational context such as Samsung and discuss the relevance of these perspectives of management.

Samsung Electronics current strategy is Creativity, Partnership, and Great People. The company’s strength is that is has a very high research and development expenditure resulting in one of the strongest patent portfolios among technology companies. Innovation is very important when wanting to succeed in the technology companies. According to BusinessInsider.com, Samsung’s innovation is to keep focus on the market. There is talk that the more a company puts into research and development the more innovation is made. However, Samsung invested in 34 reach and development centers all around the world and the company has spent an estimate of $12.8 billion on research and development alone making the company the 3rd largest amount to be ever spent in the world. By the company spending so much money on research and development it goes along with why the company’s revenue is increasing and why the company can branch off into new ventures. Such as healthcare, fashion, etc.

Commitment to manufacturing, Samsung focused on internal manufacturing instead of giving the manufacturing processes to external

Recent quality related issues have put Samsung Electronics, one of the world’s largest technology companies at risk. These quality concerns, spiked through recent recalls and external complaints, have generated a flow of bad news coming to the desk of quality director Kevin Sarni. The issues most commonly found within the complaints related to display issues, customer service support, faulty electric components, audio, and safety. Of the main issues, display and customer service support appeared to be the most detrimental. Once the patterns and themes became visible, Samsung and its quality director Kevin Sarni were challenged with immediately identifying root causes. This was

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

plan. It is a plan which leads Samsung to be the top brand in the

The business level strategy of Samsung’s memory chip business unit is an integrated strategy. Remarkably, they have both a cost advantage and a value advantage over their competitors. In this section we will describe how Samsung “widens the wedge” through cost and value drivers. The data presented in Appendix 1 shows that Samsung’s cost advantage accounts for majority of their competitive advantage.

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into four business groups. Since 1990s, Samsung has increasingly globalized its activities, and electronics, particularly mobile phones and semiconductors, have become its most important source of income. Samsung has a powerful influence on South Korea's economic development, politics, media and culture. Its affiliate

Samsung started its first operation in 1983, as a small export business, selling dried fish, vegetables and noodles, and today Samsung has grown into some parts, Samsung Electronics, Ltd., is a part of Samsung Group, that has the world’s leading and biggest technology company by revenues. The Samsung produces consumer electronics, telecoms equipment and home appliances. Samsung has 326,000 employees with it

From the three main activities, Samsung Electronics is the one that can compete with other leading brands. Initially that making Samsung’s products are on the rise is the development of 256K dynamic random access memory (DRAM) computer chip and a VLSI (very large scale integration) version of the 64K DRAM chip. By the turn of the millennium, the company’s successful introduction of leading-edge products such as mobile phones, MP3 players, digital televisions and personal digital assistants (PDAs).