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Category: Business and Industry

Date Submitted: 10/28/2013 11:30 PM

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 In this fast-paced business environment, companies fiercely seek to secure core competence to obtain and sustain their competitive advantages. This competitive dynamics is more apparent in high technology sector such as computers, communication and electronics. Samsung Electronic Co. Ltd, which entered in electronic industry in 1960s’, has reigned as not only the largest manufacturing company in Korea, but also one of the leading global competitors worldwide. in the 1980s, it entered the telecommunications hardware industry and has been very successful. Since then, Samsung has grown on average 38 percent a year, broadening its product range from simple consumer electronics and home appliances to advanced information and communication equipment, computers and peripherals and semiconductors (Yu, 1999).

Although Samsung is the world leader in advanced memory technology, its goal is not to remain as commodity supplier but to become the dominant leader in the consumer electronics and IT market. From the very begining when Samsung was new to the electronic consumer market, it refused to accept the front-runner’s definition of industry and segment boundaries, such as they entered the TV market when it was already at declining stage and decided to create new space instead of searching for niche within the existing industry by developing larger and more reasonable price LCD television. Next, Samsung collaborat competitors’s strengths and weaknesses, it underwent a sequence of reverse engineering in attaining necessary technologies for its products as it had jointventure and licensing agreements with various competitors such as Toshiba and Phlip, which owned the patents and manufacturing rights.

In addition, SEC committed significant proportion of its resources to unproven technology since 1980s and progressively created its core competence in technology for various categories, such as PCs, TVs, DVDs, DRAM and communications, while competitors fixated on their own...