Samsung - Turnaround Strategy

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Samsung Electronics Company: Global Marketing Operations
1.What are the ingredients of SEC's corporate turnaround strategy? Samsung Electronics Company originally started as a product-driven company that focused on manufacturing commodity products at lower costs than its competitors. It was established as a top OEM supplier and highly efficient manufacturer of value brands. The "new management initiative" launched by Chairman Kun Hee Lee in 1993 aimed to change SEC's direction of growth: once costs were under control and products were made, SEC changed its focus from low-end commodities to high-end premium goods. Currently, SEC has become a world class brand among the top companies preferred globally. The following essential changes were implemented during different stages of their turnaround strategy: Vertical IntegrationKept manufacturing as a core internal competence Internal manufacturing units have to compete with outside companies for supplying components for production of finished goods Flexible to plant locations where costs were low (i.e. China or India) Focus on customization of its production to keep high prices Hardware FocusDecided not to produce proprietary software Formed partnerships with content providers and allowed customers to choose Product diversificationFocused on higher quality products across all categories Samsung was one of top 3 brands by market share in all its major products Unique, tech-advanced products: semiconductors, telecommunications, digital media, digital appliances Product InnovationCreated world's first and award-winning pillar products because of its team of capable designers and engineers and potent investment in Research and Development. Because of its diverse products and innovative digital technologies, SEC was well-poised to be a leader in the emerging field of Digital Convergence. These are devices that...
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