Samsung Case Analysis

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Name: Tutor: Course: Date: Samsung Case Analysis Introduction The transformation and development of Samsung into a premium brand is generally associated with the ceaseless effort of the management team of the company under its 1996 appointed CEO, Yun Jong Yong. When Yun Jong Yong took over management, the company made its profits from the lower priced electronic products that consumers could only pick if they were unable to afford the competitors products. The company back then also supplied various low cost electronic components to the larger and well established manufacturing companies globally. Even though Samsung was making profits, the management under Yun was concerned about the future prospects of the company. Therefore they collaboratively set out to implement various strategies that would help promote the success of the firm in the industry. The following is the case analysis of the Samsung’s management operations. Problem Identification The first problem was the initial strategy that Samsung relied on; the strategy promoted low technology and over-relied on price based competition. The strategy utilized competition based on prices against the products from other companies that relied on technology. The success of this strategy relied on the capacity of the company to search for strategic locations which would allow the maintenance of low costs of production. At the same time, high volume of production had to be ensured through the generation of sufficient orders. This strategy focused on maintaining low competitive costs to attract customers. The profits of the company were therefore generated from the lower priced appliances that were purchased by consumers who could not afford the competitors higher priced brands. The company also established its market by supplying the low cost products to larger manufacturers around the world (Dess 191). The
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