Samsung Electronics was established in 1969 and successfully developed its own products internally in 1980s. The company grew very fast and even continued to lead the market with an 8% growth in gross sales during Asian crisis in 1997. Now it is transforming to a global digital company with many products occupying substantial market shares in the world.
Samsung Electronics attributed its success to four main factors; (1) Highly creative employees can develop new technologies; (2) cooperation among business partners throughout the supply chain; (3) its ability to penetrate new markers; (4) high speed of innovation and product development. The company spent high budget on R&D, product design and marketing and successfully differentiated its products from the competitors and positioned the products as “high quality” and “high-tech”.
Samsung Electronics faced a challenge of differentiating its product from the competitors. The company needed to defend the market share and profitability due to the fierce competition with many global competitors. Some competitors offering the products at low cost base also posed question on Samsung’s R&D strategies. Many competitors outsourcing R&D and product design works to lower the costs. The new trend also let Samsung Electronics to rethink R&D and product design outsourcing strategies.
Samsung Electronics can explore new market given the past successful experience to enter the market like India. The existing R&D, product design and marketing strategies successfully differentiated the products from the competitors and should not be changed. Low price strategy is also not a viable option for Samsung Electronics.
Samsung Electronics Company was established in 1969 in Korea and improved its capabilities via joint-venture with many foreign technology suppliers in 1970s. In 1980s, Samsung Electronics established Korean based R&D centers to develop products internally and to reduce the