Analysis Samsung Electronics - Case Study Example

In 2005, Samsung was a market leader in the field of semiconductors, electronics and telecommunication accessories. With 337 foreign operations located across 58 countries and 212,000 strong workforce, the company’s total sale in 2004 had reached $135 billion. Under the dynamic leadership of Kun Hee Lee, the company enjoyed competitive advantage over their rivals in the world market primarily because of the sharp business foresight and risk taking capability. The long term vision of the chairman and their ability to exploit the potential of the changing preferences of the customers, gave them leverage in the highly competitive field of semiconductor and electronic gadgets.

The company became known for its relatively low cost quality innovative product lines and was able to give stiff competition to electronic majors like Sony, Nokia, Phillips etc. by continuously coming up with ever new features in all its products.There were many factors that contributed towards company’s continued leadership position in the world market. The foremost was its business model that relied on 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 vital feature of its business strategy was its focused approach towards R&D and utilizing his human resource as capital investment.

His team was able to develop huge range within the same product because they were able to customize new products around their core design. He also introduced the concept of competing product development teams which were located at diverse locations, thus promoting competition with the group for innovation. The merit based promotion within the group ensured that the best got their dues. High potential employees were encouraged to MBA and PhD in foreign country on company’s expenses so that expert team could be indigenously developed and fostered for improved business performance.

Last but not the least important was the fact that the CEO intrinsically believed in the potential of its rivals and through continuous vigil on its rivals’ business strategy and product line, he was able to anticipate their future course. This was the main reason that he was able to keep ahead of the Chinese firms and maintain its competitive edge in the area of semiconductor, micro chips and electronic goods.ReferenceSiegel, Jordon and Chang, James Jinho. (2009). Samsung Electronics. Harvard Business School.