Q1.

Samsung was very keen on protecting its reputation in the political world,

especially that it has received many threats from outside competition, so fear of

losing market share was guarding their decision. Samsung became a conglomerate

because it wanted to smooth its political air around it as it has been put in many

conflicts that resulted in disputes between the board members and the family owners.

The diversification Samsung pursues is mainly related to and is product line

diversification and product type diversification. We can see that Samsung started to

make different lines of the same product, for example a phone it made different

series like the A series and the Galaxy series. Also, it had made different products in

general like the television, fridge and water insulation. Their core competency is

quality over quantity, I can tell from reading the case that it really cares about having

high quality product that will specifically suit the costumers, and not only them but

also suit the businesses as many businesses outsource their products from Samsung,

like using their screens and batteries. Additionally, Samsung has recently tried to

increase their prices as they step into catering another market, not just the middle

class group, but also it has used both behavioral and psychographic segmentation to

make sure it has reached more specific segments like high earners. Foe economies of

scale we can see from the case that Samsung has recently mastered this trick and is

starting to decrease its cost due to the flow and correct operational series of their

processes. Which leaders to gaining an economy of scope as well, making it very

portfolio based and increasing their investments in more than one area. It is currently
struggling because there are many factors interfering in their decision, making it very

difficult to choose a strategy and making it difficult to be aligned. Also, it is

struggling because of the competition and the extremism and easy barriers the

industry turned into.

Q2. Yes, I believe so this is because the vertical integration of Samsung has limited

their performance in the market as well as becoming more integrated and busier

within their own operations to the point that it is difficult for them to do research and

development and it became hard for them to focus on their core competitive. It did

contribute to a high degree, even throw this grant them more control ofver their

manufacturing processes, but it accounts for the overall loss of time and labor cost

increase, when they could outsource all of this.

Q3. Chaebols are family-owned multinational company. A great advantage is that

they have very good reptation in the corporate world as they are very well known

around south Korea and mean that they can get what they want easily without any

limitations. However, a disadvantage is that they then need to be forced to make some

of their family members work in the company without being worthy of doing to, so a

high hierarchy will happen and corruption may take place. American activists are

pushing for Chaebols to become more flexible with their operations, they need to

become more open about having different people in their company and not stay stiff

and stuck to their old operations.

Q.4 Yes, I think these changes will indeed take place, because once the public is

aware and once, they are very well known of the situation, it will be easy for them to

force such changes and have them implemented as quickly as possible, taking into

account the strong reputation they need to protect.

Q5. Absolutely, because Samsung is starting to act as if it is running up to get to reach

its competitors, and without actually doing any improvements on the way nor any

advances int heir technologies. From what is seen, everything she cares about is just

being better than the others and not making the other strive to be as good as her.

Which is why it needs to stop and completely re-think its strategy to make sure it’s

the most important priority in gaining market share by creating superior products and

living a blue ocean strategy.

Q6. Samsung is currently struggling with its new line of galaxy phones because it has

no way shown any innovation in the design or in the functions of the product,

therefore it has been losing sales in this segment. Also, another reason why Samsung

is losing sales in this product line is because it has many competitions who are

starting to catch up on the design and creating a similar product with similar

functionalities. In my opinion the galaxy will not revive again because I can see from

the market that it has been the most efficient in utilizing other brands like A of L line,

therefore the management in Samsung itself has recognized that this issue is

occurring and that its best if they start increasing the product lines and the offers, they
have. So, if there is a dying brand that you currently have, staring strong with another

brand is much better than having a completely lost brand and you try to revive it.