You are on page 1of 6

Samsung Electronics is a Korea-based consumer electronics company.

This essay describes Samsung's crossing from a company focused on mechanized to one known for the excellence of its product design. It discusses how the company came to use design as a differentiator and for competitive advantage. It describes the steps that Samsung took on the people, process, and system fronts to improve its design potentials. On its early beginning Samsung concentrated great importance on industrialization, and focused his economic development strategy on a handful of large domestic conglomerates, protecting them from competition and assisting them financially. He later banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition. In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. Although Samsung had no problems in funding and creating the design infrastructure, it faced a more difficult task in convincing the rank and file at the company that design was necessary for survival and growth. According to Abernathy and Wayne doubling of volume has remarkable allegations but not all the changes that happen may be desirable. Management of Samsung anticipated the consequences of Cost benefits and cost reductions, and also the investments on technology and innovation let them suffer when they pursued the learning curve strategy and reached to the inertia of success by the turning point which was the Design strategy. By 1994 Lee announced that the design strategy was their new leading innovation towards success. Samsung set aside 126 million dollars for the project. In the high-tech industry, product innovation establishes the limit to the learning curve. Pursuing low-cost strategy, flexibility and ability to innovate were important considerations for Samsung.

Q II- Businesses are pushing their internal resources to do more with less. As in Samsungs case, they require more from their applications than ever before but must operate within constrained budgets and increasing technology support requirements. This required leaders to confront the basics of their businesses, including what tasks they should be doing and how they should provision those responsibilities. With Samsung their application assortment was without exceeding over the limit budgets, compromising on performance, missing schedules, or the expectations from this new brand of customers, where their precise goal was to emphasis on their designers and on those peoples knowledge and try to achieve the maximum and to obtain the maximum. So how did Samsung achieve competitive global advantage? Samsungs aim was to focus on their designers knowledge and their aim was to manage it. It attributed a range of strategies and practices used to identify, create, represent, distribute, and enable insights and experiences. Either embodied in individuals or embedded in organizations as processes or practices and in Samsungs case was on its staff. With knowledge management Samsung focused on objectives to improve their new brands performance, and to reach competitive advantage, and innovation, the sharing of lessons learned, integration and continuous improvement of the organization.(Alavi, Leidner,1999).Samsung knew what their gap was, and where they had been doing wrong, Lee decided it was not enough just to be with high technology but also with high value. Innovation lies in the heart of both strategy and entrepreneurship, two

fields deeply concerned with how competitive advantage arises out of entrepreneurial creation and innovation (Hitt et al., 2001, Schumpeter, 1934, 1950). As the world economic system has been increasing globalize and the free market gains wild popularity in emerging and transitional economies (Tan, 2001), innovation in creating new products/markets and new organizational practices became more and more important for Samsung in global competition. Samsung gained competitive advantage through managerial initiatives that facilitate innovation (Hamel and Prahalad, 1989), efficiency and learning, initiatives that bring out the best in people to perform in winning oriented culture (Pfeffer, 1994); initiatives that generate a host of multi-purpose knowledge and competence that are not dependent on any narrowly defined product or business (Prahalad and Hamel, 1990), as well as dynamic capabilities that help Samsung resourcefully apply these knowledge and competence to specific market opportunities, as well as initiatives that creatively align a firms organizational structure and system to its global strategy . Samsung had a series of successes such as the Syncmaster series of LCD monitors in the 2000s. It should be noted that the competitive advantage gained through Creation and Innovation, knowledge creation, competence and capability building, both organizational and technical. Creating new products,markets. As taught by Sun Tzu 1000 years ago, to win without the fight should be the supreme among all strategies. Samsung won without the fight by carefully positioning itself to critical positions, which afford it later competitive advantages that are largely uncontestable. It also gained advantage by innovation in market positioning. It is not merely innovation in the technical field; it is innovation in strategic sense. That is, Samsung avoided fighting an uphill battle but engaged in creative development of new resources, capabilities, products, and markets that allowed them to be fundamentally different from yet superior to rivals (Hamel and Prahalad, 1989; Lieberman and Montgomery, 1988). Such creation and innovation aim at avoiding confrontation with strong competitors. It focuses more on the firms own moves, and did not particularly concern over competition or cooperation. For instance, In September 2006, Samsung divulged the Syncmaster 971P, an LCD monitor. The product was unique in the sense that it had a geometric shaped stand, unlike conventional LCD monitors.The company claimed that the S-Shaped stand gave the monitor additional stability and it competed against itself, creating new markets through innovative products and services. QIII- Samsung was defined by its design success, products all of that plus the management and the trainings they had they reached almost the top. How they have change to get this point of success? We will discuss it in this paragraph. As we have noticed that Samsung at the beginning used the learning curve it means they focused on higher sales volume and higher production result in cost savings. But cost benefits and cost reduction cannot go on forever because this strategy make the investment on technology low and innovation may suffer when learning curves is pursued. samsung problem was here by following this strategy they didnt reach new technology for a new design and they didnt pay attention that innovation is very important to improve their product and to let customers feels the value they give from selling those products and services. This case happened with Ford. Moreover Samsung strategy had to change they had to rejuvenate their firm, they used a new strategy innovation that implies a fundamental reconceptualization of what the business is all about and what the customer are looking for what attracts them? They had to identify a new strategic position for the company.

They worked on a new design new technology they had motivated all the employees so they can reach success as we have seen. Before starting the new business lee gave the team of designers training with specialist to the art center of design. I this strategy they asked and worked about three issues: 1 who is the customer? 2 what products should be offered? 3 how we offer these products in a cost efficient way? Samsung knew the gap and worked to fix it, they looked at new customer segments, new needs and new way of production or distribution. We should not forget that such strategy needs an experience skilled management that knows how to play the game. They should analyze what to change? What is the new position? The plan B? How should they manage with the old and the new business at the same time? Management should always detect the indicators of strategic health (customer dissatisfaction, deregulation) like Lee reportedly noticed so he worked to break the old mental model in order to redefine what he business is about? That product or services or being offered and how the product are being made and distributed. Samsung when rejuvenating the firm had created a positive crisis it means a new challenge. The company should communicate and explain the goal, that must be realistic and achievable, people must move from rational acceptance to emotional commitment. After all the analyzing and setting the new strategy Samsung got the result they worked for and they manage to have. So lee give his vision design to his managers they were clueless at the beginning but after going to the to the design center they understood well what to change and what to do? They were also afraid to lose to lose their culture because creativity is breaking away from some of the traditions, and all that was fixed after the IDS program they started to believe that they could create and innovate new designs new ideas with keeping the culture spirit of them in it. So Samsungs by letting go the learning curve started to improve their strengths to have competitive advantages in the market. First they modified their product creation process then they had a team spirit in working together So the rejuvenation of Samsung led them to reach a worldwide leading company for its product and its design strategy that give high quality plus good services and have good relationships with customers and a great management. At the end every work has it criticism, Jim Wicks said that hes not seeing an identity in the Samsungs design.. others compared it to apple computer corporation even tough Samsungs design products still for example the Q1 (lack of features ), and critics about the unrealistic prices they faces problems when two of their mobile phones models were have the same icons similar to that apple and Microsoft products but they fixed it directly.

But all the criticism and the mistakes that Samsung passed by didnt affect their success because as we have see their still big player in the market all over the world.

4) The science and technology policy that Samsung adopted was when she did the transformation from a low end oem6 into a world class electronics company. They were working of their design skills to be innovative, and as we have told before it took a major changes in the company in terms of culture processes and systems. Lee helped Samsung from using cutting-edge technology and to give value through the design. Samsung hired a Japanese design consultant to help them and to evaluate Samsung designers. He shifted Samsungs design center to Seoul. Lee settled a major plans to their new competitive advantage through design innovation, and they reach a success of 126 million $ for their design initiative. Then lee sent all the designers to give them training to the art center college of design it was the right ideas to implement and to elaborate their skills and to motivate their minds. By their determination to excel South Korea announces of the beginning of the design era that was a good encouragement to businesses to realize the importance of design to have competitive advantage. In their design they tried to give their designs the Korean values but it was difficult but they tried even though they did go to a mountain cave that housed an 8th century Buddha and from their they discovered the design philosophy that is based on balance between reason and feeling So this design philosophy was based on two opposite things the reason that is rational very geometric and the feeling who is soft organic but together they produce the best design which includes their identity. Samsungs success was by identifying there was a problem then they worked hard to fix it. They discovered the importance of innovation so they created the design and they give their identity in it so it was a huge competitive advantage to face other huge companies in the market.

References:
Alavi, Maryam; Leidner, Dorothy E. (1999). "Knowledge management systems: issues, challenges, and benefits". Communications of the AIS 1 (2). http://portal.acm.org/citation.cfm?id=374117. Economist.com Succession at Samsung Crowning success