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Samsung Electronics Porter Diamond

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by

Marie Gadenne Viscontini

on 15 April 2014

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Transcript of Samsung Electronics Porter Diamond

P
orter’s diamond model
Samsung
2008-2009

Factor endowment


Wave of liberalization

Related and supported industries 
« How much of an Iphone Samsung manufactures ? »

Demand conditions 
Constant updates : education level, internet network…

Firm structure, strategy and rivalry 
Overtaking of Nokia and Apple
From beneficial to evil : Apple vs Samsung
UPDATE 2011 - 2012
The Korean model of Chaebols and cultural influence
Family conglomerate
Hard work and competitiveness

Winning leadership with a copy/quality strategy
« Better, faster, stronger »


LG, Samsung Electronics, SK: beneficial Rivalry
cultural influence
High investments in R&D
IT clusters
FIRM STRUCTURE, STRATEGY, RIVALRY
High quality partners:
Domestic:
top manufacturing  horizontal integration
Internationally:
strong trading relations as an export oriented country

R&D infrastructure:
Government R&D programs
Research clusters: Daedeok Innopolis and SAIT
RELATED AND SUPPORTING INDUSTRIES
Location:
High-income developed country
Specialization in IT sector
Near from China and South East Asian countries

Workforce:
Competitive education environment
Public universities specialized in engeneering
 2,1% workforce in IT sector

Governement:
Support of family companies: « Chaebols »
Support competitive education system
Specific financial and international policies: export-oriented economy
FACTOR ENDOWMENT
Introduction
Samsung Electronics
Keeping the same growing model or changing it?

To copy and do it better
Vs.
A trend leader
Conclusion
Education level
High demand in Electronic and Digital devices (high added value products)

South Korean culture
Technology oriented country
Early adopters

Foreign demand
DEMAND CONDITIONS
What is new in 2011-2012 ?
First...
So...
Part of Samsung Group

4 core industries:

Digital media
Semiconductor
Telecommunication
LCD

World’s largest telecommunication company by revenues and sales


A great South Korea success:

Following and doing it better
Full transcript