In Aug 2012, Samsung, the world’s largest technology company by sales, is ordered to pay $1.05 billion in damages for violating Apple’s patents for the iPhone and iPad, “Samsung’s strategy was to build something similar to another company’s product but to make it better, faster and at lower cost”, is Samsung going to change its strategy to fit new conditions? Choe Sang-Hun’s article “After verdict, assessing the Samsung strategy in South Korea” is a roadmap to evaluating the effect of strategy on Samsung. This paper will also explore Samsung’s culture, responsiveness to external market environment and innovation
From lots of newspaper article, it clear state that Samsung’s strategy is what bring Samsung to success so far, like James B. Stewart’s “Iphone 5 Fever? Don’t Count Samsung Out” however, there might be a strategy shift after Apple’s patent win. Strategy, which is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization’s goals. Competitive advantage refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace.(textbook, management, 4th ed, p294)
The Research paper on Samsung Strategic Management
... and the big target market segmentation –large corporation. Samsung strategy is already tapping this segmentation from Automotive, Healthcare ... countries with annual sales exceeding KRW 201 trillion. Samsung market strategy is to penetrate all segmentation in the ... change – and opportunity – to global business, and Samsung has responded with advanced technologies, competitive products, and constant ...
Strategy as ways of action, to respond to competitors, cope with difficult environmental changes, like globalization, deregulation, advancing technology, and changing demographics and lifestyles, to meet changing customer needs and achieve effectively use available resources. The essence of formulating strategy is choosing how the organization will be different (Porter, 1996).
Strategy necessarily changes over time to fit environmental conditions, as companies develop strategies that focus on core competencies, develop synergy, and create value for customers. Core competence is something the organisation does especially well in comparison to its competitors. With a cost leadership strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors. (textbook, management, 4th ed, p309).
“Samsung’s strategy was to build something similar to another company’s product but to make it better, faster and at lower cost.” It depicts Samsung as a copycat, “But a copycat or not, what Samsung has done with its smartphones was a brilliant move.” said James Song, who monitors Samsung for KDB Daewoo Securities in Seoul. Samsung had a commanding lead in the lucrative smartphone market: 32.6 percent compared with Apple’s 16.9 percent by second quarter of 2012. Samsung, as the largest technology company by sales, its economies of scale helped it drive down prices to create. Samsung’s low-cost position means that it can undercut competitors’ prices and still offer comparable quality and earn a reasonable profit.
Samsung sticks to a lot of plastic, which is lower cost, and they use a surface finish to make it look like aluminum. Samsung has had a lot of success in the low-end of the market, Mr. Kuittinen noted that “Samsung’s low-end strategy has been incredibly effective.” He added, “There are big long-term benefits from building a low-end foundation,” because customers stay with the brand when they trade up. In the second quarter of 2012, Samsung huge lead over Apple when it sold nearly twice as many smartphones as Apple, because of Samsung’s strong portfolio in Brazil, India, Indonesia and China. The Galaxy III became a huge success which sold more than 10 million units in under two months. After the verdict, the patent ruling and Samsung’s copycat image had a negative impact, copy and clever upgrading is no longer viable, Samsung have to reinvent itself as a first mover. A strategy shift need to be concern as soon as possible, consider more long-term thinking, Samsung may move to a diferentiation strategy.
The Term Paper on How Intervention Strategies Contribute to Change
Anne-Marie van Oost, Master of commercial sciences and Innovation Management, InduTec asbl/vzw, avenue Nellie Melbalaan 73, 1070 Brussels, Jacques Tichon, Dr. Ing., Haute Ecole Paul-Henri Spaak, rue Royale 150, 1000 Brussels, Summary Change involves moving from one condition to another. Change is not necessarily innovation. But an organisation that finds a fundamentally new way to reach and serve ...
Samsung had play so well so far in response to external environment change, no one can beat Samsung in playing catch-up. When Iphone come out, Samsung made two major decisions that enabled it to vault over RIM and Nokia, and then challenge and surpass Apple in market share. It wholeheartedly embraced Google’s Android operating system, which leveraged Google’s software research and development prowess and let Samsung focus exclusively on hardware, where it has competitive advantage. Nokia, Motorola and BlackBerry, which didn’t do as Samsung did, now failures to adapt quickly to the smartphone boom driven by iPhones have drastically reduced their market shares. Apple’s patent ruling warn Samsung need to pay more attention on the legal problem. Samsung may lack in innovation but they adapt new idea, new technology so quick, its adaptive culture allow Samsung to achieve success in this modern world, because everything changed so dynamic. If you can’t catch up, you lost. Nonetheless, doing well in adapt is not enough for Samsung now, keep play catch may success in short term. In long term, innovation is the key to ensure market share, which Samsung is not doing well now. They need innovation to achieve future success.
Samsung had achieve great success in past year which its low-end strategy, low cost position in competition and great job as a copycat. Samsung’s develop a cost leadership strategy with its economic of scale, they had an adaptive culture and quick responsiveness to external environment change, they copy and clever upgrading, its economic of scale help keep a relative low price, aim in low end market. Apple’s patent win told Samsung it is now time to change its strategy, encourage innovation, to achieve future success and make profit.
The Essay on Guiding students from cheating and plagiarism to honesty and integrity: Strategies for change
In all academic institutions and related fields, it is required that all undertakings take place with one upholding academic integrity. Academic integrity is defined as the ethical policy or moral code of academia. The values include the aspects of avoiding plagiarism, avoiding cheating, being honest and rigorous in academic publishing and research as well as maintaining academic standards. These ...
Bibliography
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Management. (Asia pacifiv 4th ed).
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