This paper provides an analysis on the success of Samsung over recent months which has allowed the company to crush its long term competitor, Apple. Methods of analysis include Samsung’s unique quality management practices, supply chain structures, partnerships and financial performance. Results of the analysis show Samsung’s high quality methods on all its business processes, and the business model structure which has allowed it to gain an upper hand in the market. The report finds the prospects of the company in its current position are positive compared to its competitors. The areas of weakness are mainly regarding patenting, in which the company’s recent partner Google has announced to improve with their services.
Three decades of chronicling Apple's revolutionary rise was attributed to Steve Jobs, a living legend indeed. What are the key operations strategies that are allowing Samsung to crush the competition with Apple in the past few months? Introduction
Samsung Electronics Co. over the past few months has experienced enormous success globally within all its product markets, specifically within the mobile phones industry, in which some say has marginally surpassed its market giant Apple, and set a firm standing as a successful global leader. This essay will explore the key global operations and supply chain strategies Samsung has recently implemented to achieving this success over the past few years, particularly management strategies for improving quality, process development and product development. Samsung has utilised many operational strategies to distinguish themselves from the rest of the market, almost all or every strategy greatly revolves around the improvement of costs, quality, time and flexibility. Samsung has always had a slight advantage against its major competitor Apple, due to its vertical integration and self-manufacturing operations, they have learnt to use this advantage to the best of their ability, and exploit Apple’s greatest weakness, resulting in a controlled supply chain. ‘With Management philosophies deriving from both the wisdom of Korean Culture and best of Western Capitalism’ (Samsung Electronics, 2013), compliments Samsung’s uniqueness and innovative success, furthermore its recent venture with Google resulted in a huge rise to brand equity for both organizations and product development. These supply chain strategies and Samsung’s great success over its competitors is no doubt a result of its superior management strategies in improving quality, process development and product development .
Quality is a key aspect in creating a unique edge within a market; it is the capacity to consistently meet client reputation. Tackling quality improvement processes to gain an upper hand on its competitor Apple was a major challenge for Samsung, and entirely possible, despite its quality-centric reputation. Over the last decade, Samsung has shifted a lot of resources into quality improvement; they have used nearly every quality principle in the book, some of these include ASQ and internal certifications, ISO 9000 and benchmarking (Daniels, 2002). It is through implementing quality practices, Samsung became not only the largest corporation in South Korea, but also had a very strong global influence with which it competed with renowned brands like Apple. However, Samsung did not stop there; they continued to improve quality control through developing their own unique quality programs such as training, “Samsung had taken training and certification of its quality engineers to extraordinary levels”, (Daniels, 2002) and used this to educate all staff to beyond ordinary standards. Through this regular staff also possessed the quality focused knowledge of control engineers, providing Samsung a quality-centric base throughout its supply chain. Through this common education system, Samsung was able to...