Assignment - Operations and Services Strategy

A Mini Project on

ASSIGNMENT

SUBJECT- Operations and

Services Strategy

NAME- Shrinath Gidde

UID- 2019-2309-
Mission and Vision

Mission Statement

“We will devote our human resources and technology to

create superior products and services, thereby contributing
to a better global society.” 

Vision Statement

“Inspire the world with our innovative technologies, products

and design that enrich people’s lives and contribute to social
prosperity by creating a new future.”

Corporate Strategies of Samsung Company

The corporate level strategies of a firm dictate the direction of a firm’s strategic
direction about its scope of operations; the market targeted, diversity in product
portfolio and strategic partnerships. Samsung has employed various corporate level
strategies to become a major influencer in its niche. The strategies involved the
acquisition of foreign firms to overcome technology barriers, following closely on
the government’s industrial policy that provided various incentives such as the
financial subsidy and creation of technological standard and strong
entrepreneurship skills in taking high risks and make large capital-intensive
investments.
Samsung strategy of parallel development strategy led to its development of next-
generation products while at the same time mass producing the current generation
products. For example, Samsung produced mass 4M DRAM when the Japanese
also did so in the 1993s and at about the same time produced 16M DRAM to
become the leaders in producing quality semiconductors. This was followed by the
production of 64M DRAM semiconductor. Shortly afterward it launched the Giga
DRAM chip in 1999 and eventually became the industry’s technological leader in
the global markets. The second strategy is focusing on technologies with clear
trajectories. After conquering the semiconductor technology, it expanded into the
production of memory and LCDs. These products are value-added products with
similar production lines as those of DRAMs, therefore, can be shared minimizing
production cost while having an additional product for sale. The third corporate
strategy employed is aggressive investments. Example, with its mobile devices
business, Samsung’s design engineers can complete their design work for a new
product within a time frame of 3-6 months and develop eight to ten new platforms
per quarter, which makes it the world highest speed. The fourth strategy involves
Employment of vertically integrated production process for the company’s key
parts like the IC chips or the LCDs to end products. The largest advantage of this
strategy is the minimization of procurement costs and enhanced speed of design,
development, and production. It has used a unique corporate strategy in using both
the internal and external suppliers at the same time. When the company
manufactures a new mobile device, it ships some units with Samsung-made
components- screens, memory chips, batteries and so on inside while other units
are supplied by third parties. Besides the mentioned strategies, the company is also
known for pivoting and producing high-quality devices into the market very fast. It
also employs vast market research, where they offer exactly what the market
requires and pivots into line of production based on what the market might require
in the future. It positions itself in the marketplace by building on its success while
killing its failures. These corporate strategies position it at a good marketplace
globally.

Customer Segment - Samsung offers mobile phones for youth, professionals, and
businessman. The company offers Guru Series for Middle class and lower class
consumers (Simkin, 2016). The Samsung Galaxy Series is
suitable for high-class consumers. Galaxy series offers a large number of attractive
features which include Wi-Fi and 3G technology. The mobile phones of Samsung
are affordable and cheap that is why they are attracting a large number of the
consumer.

Age group- Samsung targets the customer between the age group of 22-55.
Samsung designs and develop their products according to the target customer base.
Young professionals mostly prefer Samsung mobile phones. The spending power
of the young professionals is more as compared to other consumers. The company
innovates its products according to the demand of the consumers.

Gender- Both males and females are the target consumers of Samsung. The
company offers fancy smartphones for females (Kotler, 2012). For males it has
smartphones with great space and battery backup. The company also focuses on
young women who are not much influenced with the price.

Occupation- Samsung targets students, employees and professionals. The company

has Samsung galaxy series for the businessman and professionals. This segment of
the market includes large number of working professionals.

Operations strategy
The operations strategies are formed at the managerial level, where line
supervisors, plant head, inventory and production managers, are usually present
(Kerzner, 2009). Each day the production agenda is briefed and agreed upon by
all, while IT mapping of the whole process is mapped accordingly. The
employees in Samsung are empowered to stop operations if they find NC(non
conformance) to the test reports in any of the phases of the Samsung mobile
assembly process. So each employee is a process owner, and is the decision
maker that is tactical in nature. End of the week, in Samsung is a consolidation
of figures, in the IT system where finished lots, rejected, WIP(word in progress)
are being reviewed by the group, and forward plans for the next week is done.

The key elements in the Samsung electronics is market driven pull factor, and
the challenge is to maintain the cost effectiveness, which is aided through IT,
where visibility enables to make the production process agile. Samsung tries to
sustain the system, through its experience and technological knowhow.

Parameters on which company is competing

It has been identified that the competitive priorities falls into five basic
dimensions: Cost, Quality, Time, Flexibility and Innovation.

Cost:

It can be defined as capacity of offering product or service at the lowest cost. In

SEC started, their low products on bases of three environmental conditions
currently are low national income, limited purchasing power and joint venture
companies were not agreeing to divert their technology into high product (Yu,
1999). According to Samsung Co-Chief Executive J.K Shin consumers are
moving from feature phone to Smartphone in low end countries. However, SEC
main reason for leading low cost electronics is their negotiation with suppliers
as low shipping and distribution cost due to geographically parallel. Most of the
chips and components Samsung produce by its own which gives them better
competitive advantage in the market.

Quality:

Samsung has top share in market in televisions and mobile phones sales and
hardware parts. This is because of their high tech quality and effective
production and durability. Samsung uses Six Sigma, which helps to structure
the process of defining, measuring quality, analyzing, and improvement of
products overall before handling to customers.

Flexibility:
It is a firm’s ability to responding and adaption of customer’s needs preferences
or change of business trends in the market. SEC has been always focusing on
their customer needs and wants, their products price range is from low high,
which is for all kind of customers.

Samsung brings its software update for the high-end phones as well as for the
low-end phones if suitable. Samsung has launched Note 10.1 in 2012 but it
received a software update with new version of Android with new features
along Samsung S5. However Samsung’s director have said that company
considers users review and feedback into practice when delivering new
software updates.

Delivery:

It is a competence of firm to distribute finish products timely or launching a

product on time in the market. Samsung has a strong relationship with its
suppliers which make them to produce and deliver products efficiently to the
market (sustainability report, 2011). Christopher mims, (2002) suggest that
Samsung has huge advantage in distribution. In 2013 Samsung launched galaxy
s4 handset which has been available on 36percent more telecommunication
carriers in more than 55 percent countries than apple iPhone 5. Samsung has
their distribution channels worldwide which assembles and distribute products.

Innovativeness:

It is a most critical factor considered by the firm as they have to frequently

make innovative changes to the existing product or new production. SEC has its
own research institute named Samsung advanced institute of technology (SAIT)
which make sure innovation competitiveness in market, it also identifies growth
of products in future according to market trends. SEC have different R&D
department of each products but it’s connected to SAIT. In the software
platform technology Samsung is gaining advantage from its mobile phones, by
running two applications at once by splitting screen.