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Samsung Electronics: Innovation and Design Strategy

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Jonathan Toh

on 28 August 2014

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Transcript of Samsung Electronics: Innovation and Design Strategy

Concept and Strategy
Competitive Analysis
Samsung Electronics: Innovation and Design Strategy
Benjamin | Janet | Qiu Ying | Dhwani | Jonathan
Establishment of Samsung
Establishment of Samsung Electronics
Constructed wafer fabrication facility
Focused on consumer electronics and strategic joint ventures
Developed R&D effort focusing on DRAMS
Focused on qualitative growth in its technology management
New Management initiative
Constructed R&D centres globally
Shift to portfolio centric model
Over 25 R&D centres built globally
1. Introduction

2. Product Concept and Strategy

3. Competitive Analysis

4. Recommendations

5. Q&A
Horizontal and Vertical Diversification
Economies of Scale
Reverse Engineering Strategy
Successful reverse engineering of Panasonic VCR and microwave

Reverse engineering of iPhone
Alliance strategy

In the late 1970s, Samsung aligned with foreign technology suppliers (such as NEC, Sanyo and Corning Glass Works).

After 2006, Samsung Electronics had collaborated with many industry big names !

Market Driving
Market Driven
User centric Design Philosophy
Global Localization Strategy
5 Lifestyle research labs

5 Product innovation teams

6 design centres
Product Development Process
Samsung Galaxy S Series
Opportunity Identification
Field research, data and idea collection
Global demand for interactive smartphone

Concept Generation/Evaluation
Flagship line with the letter ‘S’
Heavy focus on nature-inspired/minimal organic design
Conducted focus groups and surveys

Compile business strategies, researches, and ideas
Sourcing and manufacturing components

Innovative marketing. Eg. Smart Phone Line
Implement radical strategy instead of incremental strategy, e.g. develop its own software platform

Outsource production or adopt industrial park strategy to reduce costs

Alternative strategy – Postponement
Delaying of the final assembly of the product in individual target countries thus allowing mass customization
Used successfully by companies such as DELL and Hewlett-Packard

Continue working in market divided segments and enter the market of cheaper electronics, especially in China and India

Outsource R&D for products of lower industry knowledge
Full transcript