Submitted by: Submitted by cespinosa
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Category: Business and Industry
Date Submitted: 01/14/2014 11:00 AM
Samsung Electronics Company: Global Marketing Operations
1-What factors enabled Samsung to transform itself from (at best ) an OEM , to a major consumer brand rivaling Sony?
2-Was Samsung varied international image a help or a hidrance in their transformation?
3-What is left to be done to overtake Sony, and how will they accomplish it?
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The Company : Samsung conglomerate dates back to 1938 when it produced agricultural products. In the 1970´s focused on shipbuilding, chemicals and textiles.
-1969 - Samsung Electronics Company (SEC ) was established as a low cost producer of black and white televisions.
-1970 – Acquires semiconductor business, setting stage for growth in electronics.
-1980´s – Supplier of commodities (TV´s,VCR´s,microwave ovens ) to better known brands.
-Mission emphasis on manufacturing quality and technical leadership in the industry with investment in R&D, state of the art manufacturing and supply chain activities.
The Strategy: In 1993 Chairman Kun Hee Lee launched the “New Management Initiative” which set out to remake Samsung as a global business leader. This meant rethinking the fundamentals and a long term commitment to investment in innovative, premium products and brand value. The company pursued a bold combination of strategies which seemingly contradicted conventional wisdom.
Samsung Strategy Conventional Wisdom
-Vertical integration -Outsourcing
-Harware Focus and “open architecture” -Propietary software
-Product diversification -Focus
-Full leap into digital technology (bet the -Gradually analog to digital
Company to catch the rivals)
-Digital convergence -Stand alone products
Marketing: From a product driven company...