The Paradox Of Samsung's Rise Summary

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“The paradox of Samsung's Rise”, is an article written by Tarun Khanna, Jaeyong Song and Kyungmook Lee, published in July-August 2011 by the Harvard Business Review pages 142-147. The aim of the article is to educate its readers about how Samsung developed its special hybrid management system in order to compete outside its home markets.

The article describes the rise of South-Korea's most profitable company Samsung, who rose to the top by experimenting, taking risks and being open to new ideas and innovations. In order to compete in the international market they drastically changed their fundamental organizational structure to the core.

The authors introduce Samsung as ‘one of the most successful globalizer of the previous generation.’ By successfully implementing Western business practices within their traditional Japanese system with the focus on innovation, Samsung was able to become a global player. However, according to the authors Samsung had to face a paradox: ‘Their continued success requires turning away from what made them successful.’ The deeply integrated business system, which made them very successful would not be applicable in the international market.
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Because Lee saw an opportunity to start adopting digital technology, Samsung could surpass its competitors if they developed innovativeness and creativity to succeed in the digital market. Lee searched in the West for these qualities. He imported the Western best practices regarding strategy formulation into the company’s existing Japanese business model, resulting in the establishment of the Hybrid Management System.‘The company achieved record profits’, due to the effectiveness of the new management

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