Advantages Of Samsung's Product Development

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Justin Jones 3403615 Question 1 Samsung’s execution of new product development, customer excellence, and rapid production are three competitive advantages that the company has achieved relative to Sony. Product development became an advantage when Lee Kun Hee, the past company chairman, visited the United States and realized that Samsung’s products where being overshadowed by the designs of Sony. This inspired him to hire hundreds of young ambitious designers. The number of designer employed by Samsung increased from about nearly 100 to more than 450 in the following decade” . This high amount of designer employees is a competitive advantage for Samsung because unlike Sony, the company designers lead the product development, opposed to the marketers leading the product development. Along with having large numbers of designers, Samsung also owns multiple international design centers that allows them to gain a global perspective. Samsung has gained a competitive advantage with customer excellence with the use of tools such as the company’s laboratory in Seoul that studies how consumers get products out of boxes, read instructions, follow icons on cell phones, and much more. Things like this help the Samsung to understand its customer’s better than Sony, Which allows them to more appropriately cater to the consumer’s needs. Rapid production is another key competitive advantage that Samsung has achieved over Sony. The text book “Marketing” by Grewal Levy states that “a drive to improve, learn, and implement faster processes”, drives the whole market. Samsung’s production rates are very speedy which keeps them on top of the market. For example, over the years Samsung has cut product development time down from an average of 14mo... ... middle of paper ... ...ducts that mix technology with the active lifestyles of the consumers in Europe. Along with trying to find a way to match the active lifestyles, Samsung wants to make many of the items affordable for the people living in the European economy. Prices of many products in Europe may be lower for consumers in that part of the globe. In the Strategies listed in the Samsung U.S. Article, Samsung is more focused on acting aggressively toward innovation. Samsungs more global goal is to find what consumers need the most, and create products that incorporate consumers unmet needs. A big part of the global strategy mentioned in the Samsung U.S. article is learning from the success of competitors in order to stay on top. For example, Samsung is leading in cell phone technology and sales because it was able to observe the things that work, while quickly producing the products.

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