The case is about the Samsung Electronics Co. The Samsung Group is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue with annual revenue of US$173.4 billion in 2008 and is South Korea's largest chaebol. The meaning of the Korean word Samsung is "Tri-Star" or "three stars". Samsung Group formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and grouped them together under Samsung Electronics Co., Ltd. in 1980s. SAMSUNG’s aim is to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader. Today, Samsung Electronics global presence includes a total of 111 subsidiaries in the form of production subsidiaries, sales subsidiaries, distribution subsidiaries, research laboratories and eight overseas business divisions representing North America, Europe, China, Southeast Asia, Southwest Asia, Central and South America, CIS, the Middle East and Africa. The Samsung Electronics Co. invited us as a consultant to design strategy for its company. Our team will be responsible for making a report on the company that will contain a detailed analysis of the company and then formulating strategy for Samsung. The case was presented in front of us that describe the current situation of the company. We will try to fully analyze the situation and prepare a detailed report on it. HISTORY OF THE CASE:
Samsung Electronics was founded in 1969 in Suwon, South Korea as Samsung Electric Industries, originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers. Samsung won five awards in the Industrial Design Excellence Awards (IDEA) making it the first Asian company to win more awards than any European or American rival. And since 2000, Samsung has earned a total of 100 citations at top design contests in the U.S., Europe, and Asia. Brokerage Hyundai Securities expects Samsung to earn $10.3 billion on sales of $52.8 billion this year, up from profits of $5.2 billion and $39.8 billion in revenues last year. The case begins with the scenario that the Samsung designers taking the pain in creating the design of their product and observing the people and taking their opinion in order to improve their product design and performance. It is mentioned in the case that inside skyscraper Samsung is creating design while outside no changes taking place. DECADE OF DETERMINATION
Samsung in 1994 moved its design center to Seoul from sleepy Suwon. That same year, Samsung hired U.S. design firm IDEO to help develop a computer monitor the first of many such collaborations with IDEO and other leading consultancies. Then in 1995, the company set up the Innovative Design Lab of Samsung (IDS). Samsung designers were dispatched to Egypt and India, Paris and Frankfurt, New York and Washington to tour museums, visit icons of modern architecture, and explore ruins. Many of the new design ideas are coming from outside. Last year, Samsung started sending designers abroad to spend a few months at fashion houses, cosmetics specialists, or design consultancies to stay current with what's happening in other industries. But in the Digital Age it's not too hard for strivers such as Lenovo of China and BenQ to make products that approach the quality of long-standing industry giants such as Sony, Panasonic, or Philips Electronics Samsung, of course, was an upstart itself not long ago. FRONT-LOADED DESIGN
So Samsung must continue to reinvent itself. In the past four years, the company has doubled its design staff, to 470, adding 120 of those just in the past 12 months. And since 2000, its design budget has been increasing 20% to 30% annually. To keep an eye on trends in its most important markets,...