1- strategy adopted by Samsung to achieve global Competitive Advantage:
The concept of strategy is a long-term plan of action designed to achieve a particular goal or set of goals or objectives, an act that must be made to achieve the desired goals. Without a strategy management has no road map to guide them.
The concept of competitive advantage to Samsung, South Korea's real revolution in the world of business administration at the academic and practical level. So as to achieve continued excellence of Samsung on others.
And it can be for any company to achieve competitive advantage in many ways, but the most important of these methods at all is to be Samsung's low-cost company (produced at competitive costs and sell at a low price), or that the company is able to differentiate their products physically (raise the quality of products) or impressionistic (name and design) .
Samsung has been characterized by the development of its products through a global strategy of competitive advantages in the innovative design rendered include:
* Innovation: The introduction of a new design in the form of a good or service, and the discovery of a new design for the distribution of goods to become a figure known to Samsung, and access to the best to promote products or pricing through. Samsung did not leave this innovation of the design without planning and without monitoring capabilities needed to provide the appropriate environment to him, for example, it was the first company to produce a flat-screen TV and the size of 57 inches.
* Improved efficiency: The improvement of the degree of efficiency that lead their marketing efforts is in itself a challenge and an opportunity at the same time. The chance discovery of a way to design, lower costs, or achieve better results in the same effort is always available if they face responsible for marketing activity some of their efforts to detect, whether innovation or attempt to improve efficiency or other represents wisdom and maturity of Samsung's marketing management company.
* Create competitive differences: The creation of competitive opportunities of the most commonly used sources of opportunities in marketing management at Samsung. This competitive differences may take several forms, but aims to create a sense among consumers to distinguish between Samsung and others. This feeling was based on differences in the quality of the product, how to get it in different sizes, in the ease of his work, in the places of distribution, in the promo mixture, which is supported and, finally, in terms of the contract, including the price and how to repay the value and the delivery of product and services needed to make sure guarantee and continued performance.
* Focus on the segment of the server market: The source of opportunities and available for the marketing department is to choose a segment of the market and focus on meeting the desires and needs and design effective on these slides, and work to be Samsung is the dominant supplier in this segment service.
Samsung company's focus on adopting the design strategy, and how the foresight of management, and overcome crises, and meet the needs of the market as soon as possible, as well as many other factors that make them sit on the throne of the world of technology.
2- Samsung's strategy to any two theories of strategy as defined by Richard Whittington:
There are four main theories of strategy:
The Classical Approach: approach, the oldest and perhaps most influential, relies on rational and deliberative approaches to strategy and planning.
Evolutionary Perspectives on Strategy: approach draws on the metaphor of biological evolution, while substituting the discipline of the market for the law of the jungle.
Processual Approaches to Strategy: approach being more pragmatic, emphasizes the need to accommodate the imperfect nature of all human life, including the fallible processes which surround organizations and markets.
Systemic Perspectives on Strategy: approach is relativistic, regarding the ends and means of each particular strategy as linked to the culture and power of the local systems in which the strategy is devised.
A- Processual on Strategy:
Success behind the growth of Samsung Electronics: Samsung has followed a different strategy in their work compared to other competitors in South Korea. In the early stages I realized the importance of research and development in the company and wanted to recognize the world as a global brand.
In the eighties the company focused on the manufacture of high-quality products, while most competitors are focusing on the large size production to meet growing demand, regardless of the quality of those products.
Samsung was re-invest their profits in research and development and improve the supply chain to ensure market supply of high-quality products and obtain without interruptions.
In 1993, Samsung chairman Kun Hee Lee administration launched what he called "the new management initiative," an initiative that aims to bring Samsung to lead the business in the world. This initiative is and was what saved Samsung from the large losses suffered by Asian companies in the financial crisis that hit the region in 1997 and then called a crisis of the Asian tigers.
This initiative launched by the Chairman of the Board changed the course of Samsung and moved from a normal company in the consumer electronics industry to become the leading global company for the sector.
Samsung planned and committed because in the long term by investing in innovation and brand and distinctive products, while competitors Koreans are focusing more on short-term products such as maximizing profit targets.
B- Systemic on Strategy:
1. Focus on the long term: Samsung has changed the thinking and outlook of the Company to be designed to achieve short-term goals, to be a company focused on long-term goals. In 1993, Samsung changed the logo and became the company's name is written in English in order to be of interest to consumers around the world. And it focused on high-quality products that are made and resources invested in the continuous research and development to gain access to the benefits of new products is always high and always quality.
In one of the stories told on the subject of quality that after gave Samsung the Director of the South Korean president a cellular and emerged as some manufacturing defects very simple, was the reaction of the Director that he burned the entire productive installment of which was the 25 thousand sets in front of the eyes of the workers, and this position has had a the impact of significant myself to have a confirmation of the company's commitment to the highest possible quality in accordance with the criteria you specify.
Commitment to manufacturing: Samsung confirms that manufacturing in the company is one of the essential points in its business model, and focused Yun JongYong vice president of the company in 1997 on the domestic manufacturing at Samsung instead of outsourcing manufacturing processes to external suppliers. And Samsung was the primary focus at the end of the nineties is the development of the segments and connectors within the company. Between 1998 and 2003 Samsung invested $ 19 billion in the construction of new plants for processors and chipset, and this is what confirms directed the company to compete through the manufacture of products ranging from their own hardware processors and connectors. This self-help provided to the company a large number of the most important competitive advantages in the reduction of costs and secure the necessary number and timely pieces compared to other competitors who were asking these materials from external suppliers.
Flexibility: Samsung factories are distributed not only in South Korea but also has factories in China and India to take advantage of cheap labor and there are close to these countries from its headquarters and provide transportation and international shipping capabilities.
This great flexibility in manufacturing enjoyed by Samsung, allows them to atypical and modified products manufactured in accordance with the demand, so more than half of its sales from random memory chips are especially major companies such as Dell requests, Microsoft and Nokia. Also, Samsung can provide orders in a timely and appropriate adjustments required quantity and completely, and that's what can not another company has to offer.
Focus on materials: Samsung decided to stray away from the development of software and systems and content so as not to fall into a spiral of piracy and intellectual property rights, among others. So I went totally focus on the materials industry. They are today able to develop new products and new technologies more efficiently and without relying on external suppliers.
Many products and variety: it is clear that the size of Samsung company is not dependent on one sector of the products, they are today manufactured TVs and smart phones and random memory and flash chips and MP3 players and DVD players, etc ... This is just at the level of electronic products.
Focus on Marketing: outsourced Samsung this responsibility to the Vice Chairman of the Board, who led the company's efforts to shift the production line focus, rather than making consumers extraordinary products to making good products, and in 1999 the company Eric Kim was hired as deputy chief marketing officer and began emphasizing the importance of looking at the mark commercial for Samsung as an integral part and vital in the company is as important as factories and experiences, and thus should have been set up Samsung's global brand, not to be Samsung's brand Korean.
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