Samsung focuses on high skill recruitment particularly in areas such as engineering, I. T and management (Canada to Korea, 2015). A. Investing more in research capability, b. Because high technology companies need people who can innovate product in order to compete in the market c. Improving training either for local employees or global employees Capacity to innovate: In the past, Samsung primarily innovated products based on what competitors were producing. Samsung now has the capacity to innovate upon its own products alongside producing these products. It is the first Korean company consider globally for innovation.
International firms that initially refused technology transfers now face a fight to maintain their own technological capabilities (Ail, Park and Chevalier, 2010). Reputation: Samsung Electronics is ranked third in a list of the most reputable companies in the U. S. And the only non U. S Company present in the top ten. There were over 27,000 respondents and a diverse range of characteristics to rate the company on. This increases an upward trend in recent years. Of particular note was its reputation in Vision & Leadership, Emotional Appeal, Products & Services and
Financial Performance (Yen-jinn, 2015). Perception of product quality: After Sales issues are rare at Samsung. The company may often study items that are returned in order to learn from the issue or defect. “An example can be given for Switzerland. In 2011, Samsung signed an agreement with a Switzerland supply chain company Caveat. Under the contract, CAVE will organize pickup of return devices, such as phones, flat screens, printers and refrigerators from Samsung service partners across Switzerland and bring them to a central laboratory.
CAVE employees will carry out quality control activities on behalf of Samsung to establish if the items have an inherent defect or can be repaired. This kind of operation can be found in every market” (Canada to Korea, 2015). Capabilities for competitive advantage/ unique Resources: Tangible: Product Range: Samsung has a very large product range in smartness that are customizable (Gaucheness, 201 3) In house manufacturing: “Each division is responsible for its own factories and assembly plants.
No outsourcing of assembly takes place as far as is known. In 2011 , the major locations of assembly for mobile phones were Korea, China and Vietnam. Samsung endless its logistics in Asia for components through three key centers, Tannin, Shanghai and Hong Kong” (Canada to Korea, 2015). And Production Facilities in the same location: Based on Synergy and confluent of production, development and research. (Name, 2009) Patents: Very financially aggressive patent acquisition strategy (Liableness, 201 5) and massive portfolio (Someday, 2015).
Intangible: Brand: Samsung is investing aggressively in their relationship with the consumer and this is reflected heavily in their brand. On Integrand’s website, Samsung global brand value is in 7th place as of 2014, a rise of 15% in one ear (Abstractedness. Com, 2015). Next to Apple users, Samsung users are the next in terms of brand loyalty with 58% of Samsung consumers who upgraded in 201 3 choosing a new Samsung device (Donovan, 2014). This again demonstrates the increasing strength of the global brand. This data was gathered in the LLC.
S, LIKE and Australian markets. Given that these markets are strongholds as such for Apple, it is an even more impressive statistic given the circumstance. To add to this, 34% of migrating customers switched to Samsung (WADS, 2014). This 10% more than Apple in these regions and further illustrates the position of strength Samsung brand holds and continues to grow upon (WADS, 2014). Knowledge and Recruitment policy: One month integration programmer into company, high standard recruitment policies, and recruitment focus on intercultural strength amongst prospective employees.
Threshold Capabilities – Competencies: Distribution/Supply Chain: Outsourced to a Samsung Logistic which was created specifically to handle distribution order planning and forecasting as well as outbound logistics globally (Canada to Korea, 2015). Marketing: Human Resource: “At Samsung Electronics, with our employee-first approach o personnel management, we continue to improve performance based incentives and welfare programs in order to motivate our employees to perform to their utmost in a pleasant, healthy, and safe working environment” (Samsung, 2015).
Management Information Systems??? Research and Development: Samsung has over 50,000 researchers and engineers global distributed in an R & D strategy split into 3 divisions. 1. The Samsung Advanced Institute of Technology (SATI) This is the centre of Samsung R& D hub. 2. centers These are globally distribution and with attempted synergy. 3. Division Product Development Teams The obligation for these teams is to commercialism developments within one to two years. Investment High percentage of sales revenue invested.
Global R Network Our R network spans six Samsung centers in Korea, and 18 more across the U. S. , L]. K. , Russia, Israel, India, Japan and China-?not to mention our organizations in Universities across the globe. Our network investigates the latest technology trends and realizes technologies that offer the greatest benefits. (Samsung, 201 5) Design: “Samsung distinct design philosophy is about making meaningful experiences. Our design is based on minimalism UT reflects structural innovation that combines Samsung unique style and new technologies.
Our recent focus has been to propose a comprehensive user experience that not only delivers a sense of freshness, but also speaks to the question of how to bring value to consumers with designs more closely conceived around their lifestyles. As part of the evolution away from product designs that were more individualistic, we continue to strengthen a distinctive look and design language that speaks across all Samsung products. Continuity of user experience is a particular focus for us today. ” Gaucheness, 2013) How to use this quote from UP effectively?
Marketing and Promotion: Samsung spends more on promotion of its products and marketing than any other company ever (2013). In 2013 around $billion was spent and equated to 5. 4% Of Samsung annual revenue. This aggressive financial foray into advertising IS required to keep up with some other brands that now hold substantial intrinsic brand value of a much higher degree than Samsung (Gilbert, 2013). Capabilities for Competitive Advantage – Distinctive/Core Competencies: Research and Development: See above Culture: Culture is rigid and with high power distance.
Need more research) Interesting Source and explanation CLC http://q. Com/288923/Samsung-is- try Eng-to-improve-its-corporate-culture-amid-crisis/ Brand: Samsung is investing aggressively in their relationship with the consumer and this is reflected heavily in their brand. On Integrand’s website, Samsung global brand value is in 7th place as of 2014, a rise of 15% in one year (Abstractedness. Com, 2015). Next to Apple users, Samsung users are the next in terms of brand loyalty with 58% of Samsung consumers who gathered in the U. S, UK and Australian markets. Given that these markets are Samsung (WADS, 2014).
This 10% more than Apple in these regions and further grow upon (WADS, 2014). Marketing: Samsung combination of market research, big marketing budget and ability to produce products quickly at low cost, allows it to both learn from competitors rapidly and assertively as well as test its own products to an extent few others are capable of (Nisei, 2013). Knowledge management: Samsung uses TRIM as a systemic method of formulating and encouraging a creative elite as well as increasing innovation. The theory focuses on discovering contradictions and finding a solution to hat contradiction (Gaucheness, 2013).