Samsung Electronics

Samsung Electronics: Innovation and Design Strategy

Belinda Sidarta

October 4, 2012

Executive Summary

This case study is about Samsung Electronics’ innovation and design strategy to stay ahead of the competition. Samsung strives to consistently lead the Consumer Electronics industry in product design and engineering innovation. By January 2008, Samsung had compiled 32 innovation and design engineering awards for its products.

Fifteen years ago, Lee Kun Hee, chairman of Samsung Electronics realized that products from South Korea are nothing more than a cheap commodity for Americans. Fukuda Shigeo, the design advisor in Lee’s management team, found out that it was because of Samsung’s lack of design identity. Samsung then went through a transformational phase and adopted innovation and design as the important keys in product development processes. But these successful formulas create higher competition, many company in the same industry invested heavily in R&D and design.

This case analyzes Samsung Electronics’ strategy, which is combining the product design, R&D and brand management and also gives Samsung Electronics’ competitors analysis. It researched Samsung Electronics data for 5 years, 2002-2007. Samsung Electronics competition is getting fiercer, as many competitors enter this industry.

Background Summary

Lee Byung Chul started Samsung in Taegu, South Korea in 1939. It has numerous subsidiaries and affiliated businesses, including Samsung Electronics. Samsung Electronics is a South Korean multinational electronics and information technology company now headquartered in Suwon, South Korea. It is the subsidiary of Samsung Group. Samsung Electronics is the world’s largest mobile phone maker and world’s second largest semiconductor chip maker. The company has assembly plants and sales network in 61 countries and has 221.000 workers around the world.

Samsung Electric Industries was established as a subsidiary of Samsung Group in 1969. Its...