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.