What kind of competitive advantage does Samsung have?
Samsung has a strong competitive advantage in creating advanced product design and innovation as well as a superior process efficiency that enables them to keep their costs low. Samsung also have strong brand equity and recognition.
Primary Activities – Operations. Samsung has superior process efficiency as compared to its competitors. Over the years Samsung has won many awards for reliability and performance. Even competitors named them as their supplier of choice. As seen from Exhibit 3, Samsung’s operating costs has always been lower than competitors. This is due to Samsung’s focus on its operation management. Its employees are known to be hardworking and everyone in the firm is focus on providing only the highest quality products at the most efficient manner.
Support Activities – Firm Infrastructure. Because of the close proximity of Samsung’s main R&D facilities and its fab lines, Samsung is able to experience a positive agglomeration effect. The location of its facilities is a strategic move that allows Samsung to experience many competitive advantages. These includes saving on fab construction costs, allowing different employees to interact and improve ideas and its good location allows it to be free from dust and particles which are harmful to the development of their products.
Support Activities – Human Resource Management. Human capital has been key to their development. In order to remain competitive, Samsung has to attract and hire talented individuals from around the world. Currently, Samsung has put in place many HR policies such as the Global Strategy Group to ensure that they are able to recruit the best talents from all around the world. Samsung also puts in place many programs that invest and develops the skills of their current employees. Another policy would be rewards for achievements for individuals while at the same time not punishing them for failures. This has created a...