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Product development of Samsung Electronics
Samsung innovation strategy
Strategic capabilities of Samsung
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Recommended: Product development of Samsung Electronics
This chart indicates the Samsung electronics value chain and also presents primary activity of Samsung includes basic research, product design and product development. Samsung arrange the first step of the value chain that relates to technology development and some product development.
Inbound Logistics:
Reinvented logistics are a synthetically logistics system to canter on Samsung.
Nowadays, Samsung owns its logistics firms that relates to its subsidiaries.
Samsung also owns it’s a main subsidiary to contain all logistic service that is as Samsung Electronics Logitech.
Samsung Electronics Europe Logistics also have been divided into the main subsidiary to Samsung group.
Outbound Logistics:
Shipping and Warehousing
The process of Shipping involves in three fields.
Shipping advice, shipping approaches, shipping costs, and shipping issues.
About the warehousing process, Samsung need to control process of warehousing and also decrease costs of warehousing. Additionally, Samsung also own its major distribution centers that are built in Suzhou and Tianjin that are signi...
... of its profits generated out side of the U.S, during the years 2011 and 2012 the company revenues from outside of the U.S. has declined in a little bit and as of 2012 the company had 86% of their revenues generated outside of the U.S region. As a company that achieve almost 90% of their total revenues out side of their home country, we see clear that Texas Instruments is a company that seeks for globalization and promotes its principles. With the South Korean Ministry of Education (MOA) is planning on spending 2 billion dollars on education infrastructure to provide its students better tools to perform in the real world. And the fact that we know the South Korean culture truly appreciate the value of higher education, it is almost essential for Texas Instruments to jump on this opportunity and provide their unique product for the benefit of the South Korean culture.
Samsung’s cost advantage is clearly visible from the comparison of costs (and their elements) that were borne by the company and its competitors in 2003 (Tab. 3): Samsung’s overall cost was 24 per cent lower than the weighted average cost of the other four producers; two most significant elements of the cost structure, i.e. raw materials and labour, were 36 and 27 per cent lower respectively. When expressed by means of a relation of average selling price to costs (“productivity” of cost elements), the differences are even more visible (comp. Tab. 4 ): overall superiority of Samsung over its competitors exceeded 51 per cent!
For example, Sony Corporation and Ericsson set-up Sony Ericsson Mobile Communications with its headquarters in UK. Sony Corporation’s headquarter is in Japan while Ericsson’s headquarters is in Sweden (Sigurdson 2004).
Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).
In terms of the flow of goods in the region, each group company can directly order the material, produce the goods and sell them within the regional market. They build their own physical flow of goods, being relatively independent from the parent companys physical flow of goods. However, only one third of total revenue in the southeast Asia is produced in the region due to the limited production capacity of the group companies, the remaining two-thirds are still mainly supplied from the company's main production site in Germany.
While profits from semiconductor sales are keeping stakeholders happy, Samsung is pursuing a differentiation strategy in the smartphone market. The managers are committing more resources to researching something they think will revolutionize phones. author name writes, “All smartphone makers face the issue of stagnancy in hardware innovation. Samsung is currently working on developing a smartphone with foldable displays…” (Tanner). There has not been a ground-breaking development in smart phones in the last few years, so the managers believe
The bargaining power of suppliers is very low. Major players are vertically integrated for example KKD is producing their own equipment while others are partnering up with suppliers.
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
Value chains are essential elements of successful businesses, and how to gain a competitive advantage by analyzing them is the most important aspect. In Porter’s value-chain model, he points out that there are two types of business activities: primary activities, which include inbound logistics, operations, outbound logistics, marketing, sales and service; and support activities, which include procurement, technology development, human resources management, and firm infrastructure. In order to gain an edge, companies should focus on these activities to improve or create products that will satisfy their customers.
Technology has always been an area of interest for me, even from a young age I was fascinated with the products and devices that used various forms of technology. I can still remember the time my parents brought home the first cell phone that they ever purchased. It was a Motorola phone and was about the size of a brick, but it was one of the most interesting pieces of technology that I had ever seen. My parents had not purchased it for the technology alone, as it was meant to be a line of communication for my sister and me to get in contact with our mother in case of emergencies. My parents still have that cell phone and, one year I used it as part of a Halloween costume to the amazement and entertainment of my friends. It is
Siemens have the resources and capabilities required to carry out this strategy. They have significant profits that they are able to feed back into the company, a highly capable workforce that have the necessary core competencies to continually innovate and grow the company and they have the experience and knowledge to compete in every sector that they engage in.
Samsung used the “new product development” strategy. According to Kotler/Armstrong new product development is defined as the development of original products, product improvements, product modification, and new brand through the firm’s own product. Samsung also unveiled a new strategy, which is called “new management,” a top- to-bottom strategy for the entire company. Lee Kung Hee, CEO, hired young designers to produce new ideas that could get the company in the direction that he wanted it. New designs .Sleek, bold and beautiful products, so that they could target high-end users to the company. Samsung also was testing new product concepts.
Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry.
A detailed analysis should be made on performance of 13 distribution centers – capacity, inventory turnover, costs etc. It appears most of the centers should be closed as they serve as excessive link in the supply chain, accumulating high inventory levels.
A product is a service or item that is offered to the customer to fulfilled their requirements and needs. A brand portfolio is used to include all entities when a large organisation run under various and numerous brands, services and company. Typically, each of the brands possesses a separate trademark and manage as a single business entities. Samsung is a huge company and produce various products with creative and interesting design and sizes, therefore customer has numerous choices. Samsung brand portfolios is Samsung Electronics Co.Ltd, SDI Co.Ltd, Electro-Mechanics Co.Ltd, Techwin Co.Ltd, Heavy Industries Co.Ltd and Security Co.Ltd. All those products had been offered to the multinational company and the world. Every Samsung brand is regulated