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Value chain analysis and its importance
Value chain analysis and its importance
Value chain analysis and its importance
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EXECUTIVE SUMMARY
Today business enterprisers are creating new products due to becoming different than rivals. After that as a result it could be observed that technology is growing rapidly. Some companies will be attractive by people. More attractive means ore customers. Every company has different strategy.this assignment will explain about Samsung innovations.
INTRODUCTION
The aim of this assignment is to illustrate innovations of Samsung company such as mobile phone, lcd tv that has been discovered demands in different outlets and to find out an analysis on how Samsung has been such a popular company among its market. Besides it will explain about Samsung value chain analysis.
Global communications industry has been showing differences throughout the past a few years. Wireless communication is considered as evident for telecom suppliers. As a result the demand for innovations of Samsung is going on increase. Samsung company is successful about this. Moreover the purpose of this assignment is to focus on innovations of Samsung. Besides :
• Samsung innovations’ approaches to product, pricing
• The future expectations of Samsung innovations
HISTORY OF SAMSUNG
Samsung company is not involving electronics. It creates the other products. That is why Samsung is different than other electronic companies.
Samsung was found out by Byun Chull Lee in 1938. he starts a trade export company in korea. He was selling fish, fruit and vegetables to china. After 10 years Samsung had flour mills and confectionar meetings.
Samsung started to enlarge in to another industries such as media,chemicals financial and ship building from 1958. Samsung electronics was created in 1969. this company was p...
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...e of Strategic Planning Tools and Techniques in Saudi Arabia: An Empirical study, International Journal of Management, Vol. 22, No. 3, p. 376-395.
FIGURE 1 AVAILABLE ONLINE[http://www.xbitlabs.com/images/news/2007-07/cell_phone_mkt_share_graph.png accessed date 24.01.2010]
BIBLIOGRAPHY
Marcouse I(2006)A-Z business studies handbook 3rd edition hoddoan stoughdon publisher.
About samsung (available online[http://www.samsung.com/uk/aboutsamsung/index.html acessed date 23.01.2010]
Pearson, G. (1999), Strategy in Action, Prentice Hall Financial Times
Porter, M. E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance, New York: Free Press. #
Ghamdi, S. M. Al (2005), The Use of Strategic Planning Tools and Techniques in Saudi Arabia: An Empirical study, International Journal of Management, Vol. 22, No. 3
The changes in the technological can influence many part of societies. When the AT&T Company introduce their new product and services which is wireless and wire line technology will effects occur primarily through the new products, processes, and materials. Thus, changes in technological also often can achieve higher market share and earn higher return because, newly emerging technology from AT&T could derive competitive advantages. For example, internet today becoming more remarkable capability to provide information easily, quickly, effectively, and also can create more value for customer in the future and to anticipate future trends.
Royal Philips Electronics of the Netherlands began as a small light-bulb factory in Holland, and by the turn of the century, was one of the largest producers in Europe. One-product focus made Philips a leader in industrial research which stimulated product innovation. Consequently, product line was broadened significantly and the flow of exciting new products and ideas continued through the years. Limited domestic market soon forced Philips to grow internationally. The foundations for what was to become one of the world's biggest electronics companies were laid.
The features of their mobile phone are the crucial part of their parity, for e.g. – introduction of galaxy phone. Talking about the point of differentiation, recently we have seen Samsung is going to launch Galaxy S6 with a curved screen; which is a very new concept in this mobile sector and none of the other companies have so far been able to introduce such a new concept. Samsung seems to be the pioneer in this criterion and have done something off the hook. Overall the performance of this brand seems to be very impressive in terms of popularity, revenue and the contribution they are making to the mass public by offering their products. Nevertheless, I would still like to recommend an improvement regarding one of their major drawbacks, which Samsung still doesn’t seem to have overcome. Even though Samsung claimed they don’t actually make their customers a wall hugger, in reality actually they do. Hence, they should focus more on these specifications so that consumers don’t get the chance to switch brands in the blink of an
The last but not least element of the Samsung’s “cost puzzle” (which, unfortunately cannot be supported by concrete numbers from the case study, and is rather based on intuition) was the way the firm built and maintained intellectual capital and stimulated innovativeness and creativity among employees. It had established an incentive-based remuneration system, it sponsored employees for PhDs and MBA education, it created a family-friendly working environment in which more of employees’ energy could be devoted to solving problems at work instead of troubles in private lives. In most modern industries, such a long-term approach and investing in human capital eventually pays off resulting in higher productivity and better and cheaper products.
Product or service: The selling point of Samsung regarding its product is there's a confidence on just about all Samsung products as a result of way Samsung products have performed within the last years. Its Smart devices, Samsung offers achieved a status symbol for its customers. While doing so, Samsung is well known for its very quickly service for virtually any of its product. Now inside marketing mixture of Samsung, the product portfolio is amongst the strongest position for Samsung.
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).
Rees, J. (2012). Prescriptive strategic planning in the current economic climate and possible alternative approaches. 1-6.
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
...&D capability was not supported by their ability to efficiently produce and market the innovation. Since the R&D is separated from production and sales, it was not market-oriented enough. The limitation of sharing local market knowledge also leads Philips to its inability sell the excellent innovation that R&D has developed. Seeing this as opportunity, Japanese companies able to combine Philips invention with their mass-market production ability and successfully became the leader in the market.
Witcher, B., and Chau, S. V., 2010. Strategic Management: Principles and Practice. Cengage Learning EMEA.
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.
There are different types of strategic planning that are currently in use, since this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy whereby the objective of the strategy is defined in advance and the main elements are designed and develop...
In the year 1993, “new management initiative” started transform Samsung from a “cheap OEM” to a high value-added products provider”. At this point, company realized to take the brand to global platform and started thinking the importance of global positioning and the powering the brand. Initially, management targeted to build corporate brand image across 200 countries with focus on 17 selected products. But, in the early period, internal challenges of marketing misconceptions among the top level managers turned down efforts of this visionary growth measures.
Strategic planning is the continuous and systematic process of guiding members of an organization to make decisions about its future, develop the necessary procedures and operations to achieve that future, and determine how success will be achieved.
This country is of particular interest as it is one of the four Asian Tiger economies, whose rapid industrialisation and growth between the early 1960’s and 1990’s caused it to emerge as one of the most dynamic and fast-changing countries in Asia and the world. Much like Japan, its economic development was marked by heavy investments in foreign technology and imitation through reverse-engineering. By limiting FDI, South Korea maintained control over its industrial base and encouraged investments in R&D.