Case Study: Samsung

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Student ID: 201305008
1. The ingredients of SEC’s corporate turnaround strategy: At the beginning, Samsung was established to be a low-cost manufacturer of black and white televisions. They became a semiconductor which produced original equipments to sell to other brand names. After the influence of Asian financial crisis, a new management initiative was launched in order to change and turn Samsung become the global business leader. Samsung would not only produced semiconductor but also invest in innovative, premium products and brand value. It was the time to take advanced technology to produce innovative electronics goods with their own brand name. * Vertical Intergration

Samsung still remained them as a manufacturing company – the core goal from the day of in establishment. In order to lower producing cost, they located their plant outside Korea, in the place with cheap input material and human capital such as in China or India. Samsung emphasized manufacturing as a core competency in its own right. * Hardware Focus

Unlike Apple or Sony, Samsung did not focus on developing software but focus on hardware and devices. This helped to provide customers to approach more innovative software sources by their products than other compertitors. * Product Breadth

While other competitors just focused on one single category, Samsung concentrated in production diversification. Having experience in producing cheap home appliances including televisions, microwaves, and VCRs, they wanted to focus on higher-quality products across all categories (in 1997). * Digital Product Innovation

Samsung changed from analog to digital technology focusing on premium products. Samsung launched four of five new products in any year were designated pillar products. Their products are setting new standards for quality performance and award-winning design, this results based on the speedier decision- making processes and fewer levers of organizational bureaucracy. Digital Convergence

Samsung would focus on digital convergence, the merging of different technologies into one major product, and multiple technologies linked by one major network. In 2003, Samsung had already brought their digital convergence into their products, creating groundbreaking innovations in many areas. The implications for marketing:

In history, Samsung was the company produced low-end products with the unconsistent brand. In order to become a company focusing high-end premium goods, they need to create a global brand which Samsung did not emphasize. To create a brand, Kim had to head the corporate Global Marketing Operations (GMO) unit in order to developing the corporate marketing program for Samsung brand outside Korea. He also had to change the way marketing budgets were set. MDC was established in order to reinforce the importance of marketing to the Samsung managers. Through research from MDC, it showed that Samsung brand lacked stature and the brand image lacked emotion and a human face. Then, Samsung developed a new umbrella campaign named “DigitAll-Everyone’s Invited”. The campaign allowed Samsung enhance and empower the Samsung brand through the comarketing campaign with the Warner Brothers blockbuster movie “The Matrix Reloaded”. Samsung also was the sponsor for a lot of Olympic games. Through the marketing campaign of Samsung, we understand the importance of consistent brand in the market. In order to have a strong effect to the customers and when company wants to target to high-quality, premium products and become one of the most leading companies, it is necessary for them to have a strong brand. Brand marketing plays an important role in spreading the influence of company to the market. 2. The effect of Samsung nowadays spread all over the world with different level in...
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