Competition and Strategy
Samsung was not the first company to break into the high technology market. In fact, this market was well established by Japan, Europe, and the United States. Samsung is one of few companies that “manage to go beyond mere imitation of global competitors, leverage resources, accelerate the pace of organizational learning and manage to attain seemingly impossible goals.” Much of this is due to their unique strategy. One quarter of Samsung employees hold PhDs. Many do not take off of work for vacations, weekends, or holidays until they are retired. Those that work for Samsung have a unique work ethic. The strategic intent of Samsung is to “become a major global competitor with a premium brand position in the global market.” The way it achieved global competition was by “building layers of advantages.” These advantages included investing in production systems, acquiring the necessary technology know-how and becoming competitive in world markets, according to Renee Kim. Other ways Samsung stays competitive is by what Kim calls “searching for loose bricks, changing the terms of engagement, and competing through collaboration.” Samsung searches for loose bricks, meaning they plan strategically. Samsung looks for the unexpected and always keeps an eye on competition. Changing the terms of engagement simply means that they do not conform the ways that their competition does business. They continually strive for innovation, possibly breaking boundaries along the way. Lastly is competing through collaboration. Samsung has gone into joint ventures with names such as Philips and Toshiba to better their business practices. The continuation to strive for success is what has make Samsung a powerhouse in the global market.
|
