Samsung Electronics of Korea - Essay Example

Samsung Electronics of Korea In the 1980s, Samsung electronics of Korea was known for its imitation of Japanese electronic products which use to come to the markets with some value added feature. It used to wait for the Japanese new products and after gauging its impact on the people, Samsung used to make low cost copy those products and sell them at much lower price than their Japanese counterparts. But in 1990s, when Chinese products came into the markets, Samsung realized that it needs to revamp its strategy to maintain a competitive edge over its rivals, which primarily meant the Chinese.

Lee Kun Hee, the new chairman, in 1990s initiated the change by closing thirty two of its non profitable product divisions and retrenched 40% of its workforce to concentrate on the research into new technology like microprocessors, LCD screens and other digitally advanced products whose demands could be created in the future. The long term vision of the chairman and their ability to exploit the potential of the changing preferences of the customers, became the main mantra of Samsung’s success in the highly competitive field of electronic gadgets.

Currently Samsung’s products and services are known for their quality innovative product lines which are also cost effective. It has developed its core competencies to a formidable extent and offers stiff competition to electronic majors like Sony, Nokia, Phillips etc. by continuously coming up with ever new features in all its productsAnswer 2 The basis of Samsung’s current business model is its speed based innovative products. The company focused on its strategy of developing research and engineering skills so that it could improve and improvise innovatively on the electrical and digital products of Sony, Phillips, Matsushita and Nokia.

Samsung’s ability to launch its own products with added features with a great speed, was a huge success with the target population. Samsung had geared its teams of professionals to keep a strict watch on the people’s pulse and was therefore able to anticipate their demands and used to come up with new products and features that were envied by its rivals. Another factor that had contributed to its success was that it had realized early the fickle nature of peoples’ preferences which rapidly evolved with the changing times.

It, therefore, never manufactured its products in large quantities but instead concentrated on its research and continuously made efforts to develop new technology gadgets with highly attractive and useful features, thus striding ahead of its rivals like Nokia, Sony etc. Samsung’s main strength is its policy of its brainstorming session where experts and researchers from all its four research divisions: semiconductors; telecommunication; digital media and flat screen panel, come together to come up with innovative products and ideas which are later put into practice at different manufacturing units.

That is the reason that today, Samsung is renowned for its huge line of creative and high technology gadgets.ReferenceSamsung changes its Business model again and again