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Samsung Strategy

Samsung Management Strategy

Luke Armstrong

on 10 October 2013

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Transcript of Samsung Strategy

Functional Level Strategy
International Level Strategy
Samsung Trading Company
Research & Development
Good Morning
Darcy Brown
Luke Armstrong
Trung Tran
Lee Byung-chul founded Samsung in 1938.
Samsung diversified their business into the electronics industry in 1970
In order to sell TV's in Korea, Korean Government makes foreign firms share technology.
The Numbers in 2012.
Sales: $199 bn
Profit: $28.7 bn
Assets: $179bn

1987 saw the establishment of the Samsung Advanced Institute of Technology and signaled a focus on R&D
Isn't this assessment on whitegoods we hear you asking!
Well the domestic Appliance industry reached maturity in many of the countries Samsung operate.
To continue to expand and drive revenue Samsung focused on electronics devices.
Digital cameras, hand held devices and SMART TV's.
Manufacturing takes place in Asia where labour costs are low and has made globalisation a key strategy.
Global Electronics Industry involves Manufacture, distribution and sales of communications and entertainment devices.
Enters emerging markets and leverages substantial capital resources to increase production and obtain benefit from economies of scale.
Fast follower strategy has led to numerous patent infringement lawsuits.
Corporate Level Strategy
Business Level Strategy
Samsung obtains benefits through near complete vertical integration.
Markets products to broad range of consumers via cost leadership
As a mass producer of preliminary goods eg. semiconductor its is crucial Samsung has zero defect in their products.
Now for a little contradiction, Samsung utilises a transnational strategy, a mix if you will of globalisation and localisation
Strategy Evaluation
Vertical Integration
R & D
Cost Leadership
Global presence
Location based advantages
Local Factor endowment
International Level Strategy
Final Recomendation
Samsung Means three stars,
much like stars are born and die Samsung has had numerous incarnations.
An organisational culture of innovation and development combines with economic objectives of low cost and full production to create a transformational organisation that in one generation has gone from black & white to high definition.
Conclusions & Recommendations
Samsung Electronics
Full transcript