Samsung: Transformation from Follower to Innovator
Field course Strategy & Innovation
Samsung:
Transformation from follower to innovator Final Paper
Name: Frank Molema
Studentno.: s1656287
Supervisor: Dr. H. Snijders Table of Contents
1. Introduction 3
2. Industry analysis 4
2.1 General environment 4
2.2 Market Factors 7
2.3 Porter’s Five Forces 11
2.4 Conclusion Industry Analysis 13
3. Company Analysis 14
3.1 Business Model 14 3.2 Company Strategy 15 3.3 Competitive advantage 16 3.4 Vertical Integration 17 3.5 Conclusion company analysis 18
4. Conclusion micro- and macroanalysis 19
5. References 21
6. Appendix 22
1. Introduction
In the early 80’s Samsung was regarded as a follower in the consumer electronics industry. They delivered average quality products and were not regarded as a serious threat by most mainstream consumer electronics producers. Nowadays Samsung is widely regarded as one of the most innovative companies in the world, in which it competes for top market positions in several electronics segments ranging from semiconductors and flash memory to LCD-televisions and mobile phones. How did this change come about? Well, this is one of the main questions I am trying to answer in this paper. It focuses on the non-technical aspects of the innovation that Samsung has created and implemented in its firm in the last decade. Since Samsung is such a huge multidivisional corporation, I decided to focus on the consumer’s electronics division and specifically the consumer mobile phones. This division is renowned for its innovative products and Samsung competes for market share against fierce competitors like Nokia, Sony Ericsson and Motorola. The mobile phone industry nowadays is swamped with manufacturers who all try to push their product on the market. So it is necessary to differentiate your product from the rest of the manufacturers. Samsung’s idea on
Samsung:
Transformation from follower to innovator Final Paper
Name: Frank Molema
Studentno.: s1656287
Supervisor: Dr. H. Snijders Table of Contents
1. Introduction 3
2. Industry analysis 4
2.1 General environment 4
2.2 Market Factors 7
2.3 Porter’s Five Forces 11
2.4 Conclusion Industry Analysis 13
3. Company Analysis 14
3.1 Business Model 14 3.2 Company Strategy 15 3.3 Competitive advantage 16 3.4 Vertical Integration 17 3.5 Conclusion company analysis 18
4. Conclusion micro- and macroanalysis 19
5. References 21
6. Appendix 22
1. Introduction
In the early 80’s Samsung was regarded as a follower in the consumer electronics industry. They delivered average quality products and were not regarded as a serious threat by most mainstream consumer electronics producers. Nowadays Samsung is widely regarded as one of the most innovative companies in the world, in which it competes for top market positions in several electronics segments ranging from semiconductors and flash memory to LCD-televisions and mobile phones. How did this change come about? Well, this is one of the main questions I am trying to answer in this paper. It focuses on the non-technical aspects of the innovation that Samsung has created and implemented in its firm in the last decade. Since Samsung is such a huge multidivisional corporation, I decided to focus on the consumer’s electronics division and specifically the consumer mobile phones. This division is renowned for its innovative products and Samsung competes for market share against fierce competitors like Nokia, Sony Ericsson and Motorola. The mobile phone industry nowadays is swamped with manufacturers who all try to push their product on the market. So it is necessary to differentiate your product from the rest of the manufacturers. Samsung’s idea on
References: Literature: - comScore Networks Wireless Report, 2007 - Datamonitor, Global Mobile Phones: Industry Profile, 2007 - ComScore, Wireless Consumer Segmentation Analysis, 2007 - J.D. Power & Associates, U.S. Wireless Mobile Phone Evaluation Study, 2005 - Ofcom, 2007 - White Paper: Branding An Evaluation of Samsung Electronics, retrieved from: http://digitalstevenson.com/sarah/professional/brandingwhitepaper.pdf - Les Echos, “Samsung challenges Sony’s stronghold”, www.samsung.com, March 12, 2002. - Samsung, others adopting value innovation, Tim Jones, sep. 2006, Technology management - Samsung: Success by Design, 2006, Sachin Govind, ICFAI Center for Management Research - “Design – The new competitive difference, David Wolfe, July 18, 2005. - “Welcome to the design revolution”, John A