...non-profit. According to Tang & Musa (2011), the supply chain is a conception of carefully synchronised, supportive networks, challenging with different networks. Moreover, the emphasis is on handling procedures that involve other organisations as associates in accomplished relations to execute the actions essential to fulfil the procedure. It can be said that global supply chain necessitates inaugurating relations with organisations working in entirely dissimilar administrative, financial, and physical...
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...ELECTRONICS INDUSTRY IN ASIA Research Paper Series No 3 In the Belly of the Beast: Samsung Electronics’ Supply Chain and Workforce in South Korea Jiwon Han, Wol-san Liem, and Yoomi Lee Research Institute for Alternative Workers’ Movements, South Korea In the Belly of the Beast: Samsung Electronics’ Supply Chain and Workforce in South Korea © 2013 Asia Monitor Resource Centre Asia Monitor Resource Centre Flat 7, 9/F, Block A Fuk Keung Industrial Building 66-68 Tong Mi Road Kowloon Hong Kong Tel: (852) 2332-1346 Fax: (852) 2835-5319 Website: www.amrc.org.hk The paper may be reproduced in any non-profit publications; credit is requested. In the Belly of the Beast: Samsung Electronics’ Supply Chain and Workforce in South Korea By Jiwon Han, Wol-san Liem, and Yoomi Lee (Research Institute for Alternative Workers Movements) February 2013 Edited by Asia Monitor Resource Centre Research team: Jiwon Han, Wol-san Liem, and Yoomi Lee The Research Institute for Alternative Workers Movements (RIAWM), Seoul, South Korea, was established in 2010 to contribute to the revitalization of the workers movement in South Korea and beyond. RIAWM is working to critically analyse the conditions workers face amidst the structural crisis of capitalism, and develop concrete policy for workers movement that both improves workers’ lives and strives towards an alternative political-economic system. RIAWM is affiliated to the social movement organization People’s Solidarity for Social Progress, founded in...
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...Industry ManMohan S. Sodhi Cass Business School Seongha Lee Samsung Forthcoming, JORS (2007) ABSTRACT: The consumer electronics industry is a $ 240 billion global industry with a small number of highly competitive global players. We describe many of the risks associated with any global supply chain in this industry. As illustration, we also list steps that Samsung Electronics and its subsidiary, Samsung Electronics UK, have taken to mitigate these risks. Our description of the risks and illustration of mitigation efforts provides the backdrop to identify areas of future research. INTRODUCTION In supply chain management, there is much discussion on risks related to such aspects of supply chains as short product lifecycles, keen competition combined with cooperation, and globalization. The consumer electronics industry is the very embodiment of these aspects of supply chain management and related risks. While some of the supply- and demand-related risks are similar to such industries as the toy industry (Johnson 2001), the consumer electronics industry faces additional risks due to its vertically integrated supply chains. This article seeks to provide a starting point for understanding supply chain risk in this industry through examples from this industry as well as related ones like computers and mobile phones. To illustrate the mitigation of these risks, we list steps that Samsung Electronics and its subsidiary, Samsung Electronics UK, have taken to manage these risks. The consumer...
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...Increase in market share: Samsung Electronics has a diverse business portfolio consisting of Consumer Electronics, which encompasses the business units that manufacture and sell digital TVs, monitors, printers, air conditioners and refrigerators. The IT and mobile sector includes businesses that specialize in mobile phones like smartphones and multimedia phones, ICT systems and cameras. The semiconductor sector is the bread and butter of Samsung, which includes memories and system LSI. The display planel sector comprises of business units that produce and sell display panels for a variety of key products such as TV’s, monitors, notebook PC’s, and smartphones. Year 2012 proved to be very successful for Samsung Electronics as it cemented its position as a market leader in electronics owing to its increased revenue in Consumer Electronics and Semiconductors. Figure 1 Samsung competes with Sony and LG Electronics in televisions, with Toshiba and SK Hynix in chips and with LG Display in flat-screens. Initially, Samsung was considered to be an OEM player known for its lower prices and technology. The transformation from manufacturing player to a market leader in Electronics industry was a result of Samsung’s focus on product designs and innovative products. Samsung is a market leader in Semiconductors (NAND) business line. Samsung accounts for 41% of global market share in semiconductors business line, followed by SK Hynix, Micron and others. Figure 2 – Net Sales by business...
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...Competitive Intelligence – Samsung Electronics Project 4 Sarah Stottsberry Samsung Electronics is one of Samsung Group’s multinational corporations. Samsung Group is South Korea’s largest conglomerate that serves several major global industries including but not limited to electronics, machinery, chemical, financial services, engineering, and entertainment. Company Vision "Leading the Digital Convergence Revolution" Outstanding financial returns during the semiconductor boom of the mid-1980’s gave Korean firms, like Samsung Electronics, the financial capacity to devote funds to R&D that has ultimately made them the leaders of the digital convergence era. As a leader, Samsung is dedicated to providing a world that is networked together including core components such as memory chips, along with, A/V equipment, computers, telecommunications devices, home appliances and other products that will offer a total solution for the digital convergence era.[1] This Digital – eCompany focuses on networking devices together, along with streamlining productivity in order to maximize R&D return. Business Areas CTO (Corporate Technology Operations): Leads R&D activities at the corporate level by defining mid to long term range strategies, enhancing R&D efficiency, and by developing shared technologies across software and production. • It strives to acquire better foresight than competitors • Company-wide R&D action plans provide better technological readiness...
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...What factors might be considered in assessing Tesco’s performance in Thailand and South Korea and in comparing/contrasting their performance to that in Taiwan? Tesco chairman in south korea accused Seoul’s policymaker of being against expansion of supermarkets to protect the small family business. Korea is the second largest market for tesco after U.K, generated 5 bn pounds revenue for tesco and 300mpounds in trading profit last financial year. Started with two stores 14 years ago, now has 350 stores, operates under the brand “home plus” and is the second largest chain after “e-mart” Succeeded in a tough economy as south korea where most fid is still low and brands such as carefour and wallmart were forced to quit. Many analysts attribute Tesco’s success to its decision to entrust Mr Lee seung-han(Chairman-South Korea) with running a Korean-style retail operation without drafting in cohorts of foreign executives. According to him Tesco in Korea is run through an ideology of “synbaration” – a philosophy that is supposed to fuse the best of western and eastern business practice. New innovative ideas in south korea: Virtual shopping hag got their sales increased 130 per cent in three months, and their number of registered users went up by 76 per cent. They are now number one for online groceries and the gap between them and E-Mart has narrowed offline. Whether you see their virtual stores as a display advertising campaign or a new way of building supermarkets in spaces...
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...SAMSUNG INDIA-An Introduction Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. It is the hub of Samsung’s South West Asia Regional Operations, and looks after its business in Nepal, Bangladesh, Maldives & Bhutan besides India. SIEL commenced operations in India in December, 1995. Initially, a player only in the Colour Televisions segment, it later diversified into colour monitors (1999) and refrigerators (2003). Today, it is recognized as one of the fastest growing brands in the sphere of digital technology, and enjoys a sales turnover of over $ US 1 billion in a just a decade of operations in India. Samsung in India has a presence in the following areas of business: • • • Consumer Electronics (CE)/Audio Visual (AV) Business Home Appliances (HA) Business Information Technology (IT) Business Its operations are broadly divided into the following key sub-functions: • • • Sales & Marketing Manufacturing Software Centre Operations THE SALES & MARKETING FUNCTION Headquartered in New Delhi, Samsung India has a network of 19 branches and 16 Area Sales Offices (ASOs) located all over the country, and the number is expected to grow, as the organization continues to expand its horizons. The Sales & Marketing function at Samsung is primarily divided into two categories: • • Sales & Marketing (IT) Sales & Marketing (AV/HA) Apart from...
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...Acknowledgement: This research has been supported by grants from the Alfred P. Sloan Foundation and the U.S. National Science Foundation (CISE/IIS). Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the Sloan Foundation or the National Science Foundation. Abstract This article analyzes the distribution of value from innovation in the global supply chains of the Apple iPad and iPhone. We find that Apple continues to capture the largest share of value from these innovations. While these products, including most of their components, are manufactured in China, the primary benefits go to the U.S. economy as Apple continues to keep most of its product design, software development, product management, marketing and other high-wage functions in the U.S. China’s role is much smaller than most casual observers would think. A key finding for managers is that they need to beware of relying too heavily on single customers. With its control over the supply chain, Apple has the power to make and break the fortunes of many of its suppliers. A key finding for policymakers is that there is little value in electronics assembly. Bringing high-volume electronics assembly back to the U.S. is not the path to “good jobs” or economic growth. Capturing Value in Global Networks: Apple’s iPad and iPhone In an earlier article in Communications of the ACM [7], we conducted a micro-level economic analysis...
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...Business level strategy of Samsung Introduction Samsung Group (Samsung, 2016) is the largest group or the giant in Korea. Samsung Electronics is the biggest subsidiary of it, which initiated in 2011. A Korean consolidated company generates an average income of $ 150 billion every year. Samsung Electronics has 144 consolidated subsidiaries which 28 were recently combined at the end of 2014. Samsung Electronics contains three core divisions: • Device Solutions, a Business to Business (B2B) division handling semiconductors, various other chips and also Liquid Crystal Display (LCD) and other components.. • Digital Media & Communications (DM&C) is primarily a Business to Consumer (B2C) Company making computers, television sets and phones and also everything in between. • Samsung Advanced Institute of Technology (SAIT) is the research power of Samsung that likewise manages (at the moment) its brand-new companies. The three company divisions deal with nine business level units. Image 1 These all units are regulating by each different ways. Numerous marketing and advertising strategies, various marketing projects, different devices, various PhD owners, in addition to numerous purposes with goals For that reason these products are numerous business devices of Samsung Company. Important point is that there are numerous rivals for each system around the world with suitable competitors that needs to manage each unit by various business unit level techniques. Business Level Strategies ...
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...launch of innovative products such as the iPod, iPhone and iPad, Apple became the biggest brand in the world. Now it remained to be seen if Tim Cook would be able to continue to develop new products and maintain Apple’s success. PROBLEM STATEMENT ANALYSIS 1) Review Apple’s supply chain for the iPhone. What differences set it apart from its competitors? The supply chain starts with the development of a new product each year, this lifecycle is shorter than the one for traditional products. During the development process, the design team works closely with the production team to ensure the feasibility of products in large volumes. In addition Apple products have a limited number of configurations, this allowed its supply chain to be streamlined opposed to some of Apple’s competitors (Dell) which have products with a large variety of characteristics. Another difference that set Apple apart from its competitors is that the company is highly integrated, with centralized R&D and accounting, instead of separate departments for each product. In the case of manufacturing, Apple likes to purchase key components in advance and also has a program to buy equipment for the suppliers in exchange for supply assurance and reaching cost targets. Product demand is forecast with 150 days of advance to allow adjustments in productions schedules but sometimes Apple altered orders at short notice and suppliers need to adapt. Apple also signs exclusivity agreements with key suppliers that allowed...
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...the cellular market. With the introduction of both Apple and Samsung smartphones, which have continually increased each company’s growth in terms of revenue and market shares, Research in Motion will soon find themselves struggling to stay in the game. If RIM does not adhere to making some drastic changes, the company will continue on this downward spiral and be ultimately terminated. One major avenue to solving RIM problems is a strategic alliance with the electronic tycoon Samsung. Among the numerous potential hardware partners, Samsung appears to be the strongest fit. Their supply chain strength is unmatched – even surpassing the past magnate Nokia, to become the world’s largest cellular provider. Samsung’s smartphone is driven by the android operating system provided by Google, and its popularity has spread like wildfire over the last few years. Google android currently dominates the market share and is accounted for as so: Google Androids OS is assessed at 56% of the smartphone market share, subsequently Apple is the runner up with 23%, while RIM follows with a meager 7% of the share. Unlike Apple and Google, the RIM market share is rapidly decreasing. Samsung has shown previous interest in RIM’s Blackberry 10 OS, but a deal cannot be made until RIM launches this technology. Samsung proudly boasts advanced innovative craftsmanship through their “ smart product line”. They also operate under a global supply chain management team, in which products are produced and supplied...
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...Suffolk University Thien Le Apple iPhone 6 & 6 Plus Managing for quality is one of the most important issues that a firm has to take care of to sustain and grow its business. The overall quality of products plays a big role in brand reputation and reliability as well as in the improvement of customer satisfaction. As a “big guy” in the manufacturing of electronic devices, Apple has separated itself from other players by creating a high quality standard derived from its brand positioning that is rooted in the company’s culture. Every product has to go through a whole set of processes to make sure that it meets the highest standard of quality. Even though they are mass-produced, its products are detailed in a way that makes them look like they are finely crafted. All the products are integrated to insure that they are easy to use with minimal after-sale support. To make those things possible, suppliers of Apple are carefully selected and tested to ensure that they are able to conform to the standards set up by the company. The quality of products is evaluated based on internal and external quality metrics such as level of customer satisfaction and design conformance. Below is the result of an official survey conducted in 2013 on smart phone customer satisfaction by manufacturer which Apple was on the top. Apart from product quality, Apple also focuses on service quality. It provides Apple users with advice and technical support through its physical and online infrastructure...
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...Strategy More: Samsung Innovation Strategy Apple Samsung Has A Totally Different Strategy From Apple, And It's Working Great REUTERS/Lee Jae-Won Just a few years ago Samsung was struggling to catch up in the smartphone market. Now it makes more of them than anybody else and has Apple on the back foot, in addition to being the world's largest technology company by revenue. The heavily hyped launch of its flagship Galaxy S4 smartphone is the latest step as it tries to overtake Apple, and they've gone all out with a massive screen and impressive new features. Here are some of the core pillars of Samsung's strategy. The ultimate fast follower Samsung is better than anybody else at learning from its competitors. "A market reader is sort of the classic fast follower," explains Barry Jaruzelski, senior partner at Booz&Co and the co-author of the Global Innovation 1000. "It doesn't mean they ignore their customers, but they're very attuned to what competitors are doing and what other people are bringing to market first and observing what seems to be gaining traction, then very rapidly coming up with their own version of that innovation." Samsung's aggression has gotten it into trouble in the past, losing a high profile case to Apple for imitating its design. But the reputation hit and the fine were a small price to pay. The company pivots and produces quickly, coming out with a variety of devices. It sees what the market responds to, pushes successes, and kills failures...
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... Japanese consumer electronics companies long ago surrendered their top spot to more nimble competitors like Samsung Electronics andApple. Many of the country's chipmakers also struggled as competitors in Korea and Taiwan thrived. Meanwhile, marketing executives at major multinationals turned their attention to China and India, the world's new economic powers. For many, Japan was largely an afterthought, a declining power with an aging population. The turmoil following the March 11 earthquake has provided a rude reminder that, when it comes to the global electronics industry's supply chain, Japan still matters. The country's factories produce about one-fifth of the world's semiconductors and 40 percent of electronic components. Japan's Mitsubishi Gas Chemical and Hitachi Chemical combined make almost all of the world's BT Resin, a raw material used in chip packaging, and Hitachi Chemical has 70 percent market share for a type of chemical slurry used by semiconductor producers for polishing chips. Tech executives and investors therefore should be worrying about a prolonged shutdown of production in Japan, where many factories are closed and there's no clear sign of how much damage they suffered or when they might reopen. Typically, big chipmakers likeTaiwan Semiconductor Manufacturing Co. keep between four to six weeks of supply, so uncertainty about maintaining supply from Japan is not a problem -- for now. However, "all these Japanese companies are not able to give us an estimation...
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...Vertical Integration of Samsung Vertical Integration is a method of management control that is used by many companies. It is the process in which a single company controls or owns the distributors and the suppliers in the production of a product or service. This vertical integration is an important corporate strategy as it creates significant impact for the company in the regions of costs, differentiations, and other strategic issues. Vertical integration if applied right, can help company to reduce costs and improve efficiency by reducing transportation expenses and reducing turnaround time. Vertical integration is divided to backward integration and forward integration. Backward integration is when a company buys its suppliers, or set up its own facilities to manufacture supplies. Usually when a company buys a supplier, it is because of the products that are produced by supplier is performing very well and in great quality therefore create a good feedback from customers. It also reduces transportation costs, improve profit margin and make the company more competitive. Forward integration is where activities are expanded to include control of the direct distribution of its products. A company buys its own retail shops to distribute the products directly. With this way, the company can market its products directly to the hand of costumers rather than having to engage with other retailers. This can help company to achieve higher market share, better access to customers...
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