...Japanese keiretsu, there are two types of groups which are horizontal and vertical. As Janet mentioned earlier before. Horizontal keiretsu is a business network, composed of entities and industries, normally centred around a bank and trading companies. So when we look into today's horizontal keiretsu model, their purpose is strictly distribution of goods around the world, which helps incorporate keiretsu companies in other nations; and sign contracts with other companies to supply commodities used for Japanese industry. This shows that group can generate "smooth performances" with stronger firms serving to assist weaker firms. Moreover, close relationships with banks and other group such as insurance companies provide the firms with ready access to financing and reduce the need to carry reserves of long-term debt or liquidity. This closely connected set of financial stakeholders also open the firms to wide-ranging scrutiny, which reduces risk for creditors, network shareholders, and transaction partners. While a vertical keiretsu are composed of a major industrial corporation and its suppliers in a particular industry. The benefits on this vertical group membership is that they provides suppliers with a stable market for their products and the possibility of technical, managerial and financial assistance from core firms; to decrease transaction and production costs. Moreover, the vertical keiretsu system assures the member of companies both a constant market and...
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...Semiconductor company founded, began with Wafer production. And acquired by Samsung latterly Crisis : 2001 – 2002 Semiconductor Industry Crisis Growth : Semiconductor Industry has 16% of growth rate On average, 1960 - 2000 1980s, Samsung Group more focus on Electronics market and found Samsung Electronics, manufacturing in South Korea built 8” Wafer technology developed, dramatically shift to Samsung of production capacity Recovery : Samsung survived crisis with their competency and Branding strategy Samsung Brand being listed as 21st valuable brands in the world by Interbrand Corp. Samsung Group started Electronics industry in television market 1960 1969 1974 1980 1992 Copyright © 2012 by College of Management, Mahidol University. All rights reserved. 2004 2005 Industry Summary Semiconductor Industry Market Size ตลาด DRAM in 2003 ($19.5 Billion) Avg. Growth rate = 16% Sales = $200 Billions (1996 – 2000) 68.2 521.5 896.4 535.3 Logic Chips 672.8 19% Samsung Micron Infineon Hynix SMIC 3% 33% Sales = $166.3 Billions 20% Memory Chips Production Volume in million unit 256 Mbit equiv. EXHIBIT 4 Sales = $33.7 Billions FLASH 32% Mobile devices SRAM 10% Server & Workstation DRAM 58% Desktop Copyright © 2012 by College of Management, Mahidol University. All rights reserved. 25% Samsung Micron Infineon Hynix SMIC Market Share ตลาด DRAM in 2003 Industry...
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...market and distribute their product all over the world. These corporations have specific strategies in place that help with efficiency, productivity and profitability through political activities, outsourcing and vertical integration. One of the most successful transnational corporations is Apple. From their first product launch of the Apple II to the in 1977 to the most recent iPad Mini in 2012 Apple has continued to evolve and develop their products it’s only natural that they move to a global scale. The development of the iPhone is what brought Apple to become more popular in the global market not just from a customer perspective but a manufacturing perspective as well. Corporations financially support the political process in several ways, such as contributions to the state and local level. They also engage in political spending indirectly through supporting trade associations Apple is a moderate political spender and has contributed approximately $580,000 in corporate funds to political activities in 2002 (Center for Political Accountability). Trade associations serve a variety of purposes such as engaging in lobbying and issue advocacy. Apple is a member of the Retail Industry Leaders Association (RILA) which serves as an advocate for the industry through integration of public policy with retail operations ensuring Kimberly Soria Globalization HIS-213254 13 October 2014 Written Assignment Module 3 2 of 7 consistent communication and information flow (Center for Political...
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...Comparison of Apple and Samsung’, Design Management Journal, vol. 8, no. 1, pp. 22-34. Lee, K & Jung, M 2015, ‘Overseas factories, domestic employment, and technological hollowing out: a case study of Samsung's mobile phone business’, Review of World Economics, vol. 151, no. 3, pp. 461-475. 2016, Samsung Company, viewed 18 June 2016, <http://www.samsung.com/au/aboutsamsung/samsung/valuesphilosophy.html> Kim, B 2013, ‘Phablet Phenom: Samsung Galaxy Note Pens Best-Seller’ SERI Quarterly, vol. 6, no. 2, pp. 73-81. Si Hyung, J & Keun, L 2010, ‘Samsung's catch-up with Sony: an analysis using US patent data’, Journal of the Asia Pacific Economy, vol. 15, no. 3, pp. 271-287. Lee, J & Slater, J 2007, ‘Dynamic capabilities, entrepreneurial rent-seeking and the investment development path: The case of Samsung’, Journal Of International Management, vol. 13, no.3, pp.241-257. Wolff, M, Jones, T & Lee, D 2006, ‘Samsung, Others Adopting Value Innovation’, Research Technology Management , vol. 49, no.5, pp.5-7. 2003, ‘Samsung to move PC-making to China’, Far Eastern Economic Review, vol.166, no. 39, pp. 24. Lee, S 2003, ‘Samsung CEO Ki Tae Lee on expanding the global market’, Academy Of Management Executive, vol. 17, no. 2, pp.27-29. Leachman, R, Jeenyoung, K & Lin, V 2002, ‘SLIM: Short Cycle Time and Low Inventory in Manufacturing at Samsung Electronics’, Interfaces, vol. 32, no.1, pp. 61-77. Seongjae, Y 1998, ‘The Growth Pattern of Samsung Electronics’, International...
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...Introduction of Samsung………………………………………………..……3 * Competitive strengths of Samsung………………………………..………….5 * Future success of Samsung’s Performance…………………………….10 5.1 Would Samsung bring it to the same level as Wal-Mart?..........…10 5.2 Capability to attain the target as designed………………………..12 5.3.1 Financial highlights in 2011…………………………………..… 12 5.3.2 Chinese threat on Samsung………………………………….......12 5.3.3 Five Forces Analysis for Samsung……………………………….13 5.3 Key Values of Samsung……………………………………….…14 5.4 Emerging markets are key to future success for Samsung............16 5.5 Conclusion……………………………………………………….16 * Recommendation……………………………………………………………..17 * References……………………………………………………………...…….17 * Executive Summery The purpose of this assignment is to present a study of Samsung’s competitive strengths to expand its business globally and make an initial proposal that Samsung pursue opportunities in around the world to bring it to the same level as Walmart. With the rising economic of scales and rapid development of Asian economic, it seems people living status been rise up. Even with Samsung makes it in to untouched market entrance. These opportunities show promise for improved returns for Samsung market potential. This report mainly focus on two key elements * Samsung’s competitive strength * The ability to bring Samsung to the same level as Walmart. * Introduction of Samsung Samsung...
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...SAMSUNG ELECTRONICS CASE STUDY Attention: Chairman Kun Hee Lee Ariadna Torres Niubo 2016400073 Corporate Strategy - What recommendation would you make to Chairman Lee regarding Samsung’s response to the threat of large-scale Chinese entry? Why you make such recommendation? Samsung should defend its technological leadership and its benefit advantage, investing in R&D, strengthening its superior product, design and process efficiency to fight against the Chinese competitors. The company has to focus more on Flash and less in DRAM or SRAM, should start winding down PC chips and focus more on mobile and should defend the older generation of the legacy market for the next decade. If we talk about DRAM, in terms of frontier products we can see that Samsung has a core competence in design while China has a lack of technology and will need at least 10 years to catch up them. Due to this, Samsung should continue developing new frontier products in DRAM. Moreover, in terms of legacy products this are the ones that will take the biggest hit due to the ability of China to cheaply produce mass older generation chips. Despite that fact, Samsung can still defend its position near-term. They should produce for more or less 10 years until China gets good. After this, they should wind this down and outsource this production to Chinese MFGs by sharing blueprints. Finally, in terms of specialty products this are the ones that should require to be produced to...
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...In 2000, Samsung was by its own admission "a third-tier commodity brand with very little product differentiation." [The quote is from Eric Kim, who was at the time of the quote, 2003, executive vice president for global marketing operations at Samsung.] Interbrand (with Businessweek/Bloomberg) provides an annual ranking of the world's most valuable brands. [see Interbrand - Best Global Brands 2012 - 2012 Report]. Currently (2012) Samsung is #9 on that list. Its brand is valued at almost $33 billion. But get this: in the year 2000 Samsung wasn't even on the list. For many years, Samsung's fondest hope was to emulate the success of Sony. Today, they have eclipsed--by a significant margin--the struggling Japanese firm. Sony's brand is valued at a "mere" $9 billion, or #40 on Interbrand's list. So how did Samsung achieve this remarkable global marketing feat? I'm glad you asked. These from the highlight reel: 1. Hired the right people. Principally the aforementioned Eric Kim. He was the right guy at the right time: Korean-born, US educated (a Harvard MBA, but don't hold that against him) and experienced in the technology sector (CEO of Pilot Software before Samsung scooped him up). Chairman Kun Hee Lee gave him the clout, the money and the opportunity to remake Samsung as a global business leader. Like all great marketers, Kim could also sell on the inside of the organization itself. 2. Championed Digital Product Innovation. They bet the company on digital technology...
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...on organization’s strength, weakness, available opportunities and possible threats. Samsung Electronics Co. Ltd is the leading brand in the world. To be a market leader might be easy but to maintain that lead is one of the difficult tasks. (Lee et al. 2015) SWOT analysis on Samsung Electronics would provide insight of the company. Samsung’s biggest strength is its expenditure on the research and development (R&D) department. Innovation is crucial in technology sector, especially, where companies like Apple, Intel, Microsoft, are operating. In 2015, Samsung spent the second largest amount on R&D which was around US$14.1 billion (Jaruzelski, Schwartz and Staack, 2015). Since 2012, Samsung topped the chart of companies having most patents securing approximately 15000 patents. Interbrand (2015) and Forbes (2015) estimated the Samsung’s brand is worth US$45.3 billion and US$37.9 billion, respectively, making it the 7th most valuable brand in the world. Furthermore, Samsung has adopted vertical integration technique for its smart phones production which has resulted in low cost production. It currently operates in more than 80 countries Discussing weaknesses, Samsung does have some gaps, such as; there are too many models of smart phones in the market, considering that, there was a decline of 32% in its operating profits. Reason being, different models incur various costs. In 2015, Samsung released 34 new models that are exceeded HTC, Apple and Lenovo. Secondly, the company’s...
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...| Samsung Case Study | | Proctor and Gamble Group | LG | Laine Norton Molly Gottschalk John Havlat Patrick Johnson Lucas Wright Xihui Yan | | Managerial Marketing GRBA 813 Dr. Saini September 24th, 2012 Corporate Turnaround Samsung Electronics Company has achieved a remarkable turnaround over the last two decades. Before the 1990s, Samsung was not highly regarded, and struggled with their brand identity and value. Samsung was known as a low cost Korean electronics brand that manufactured consumer VCRs and televisions. The entire company, as well as their products, did not compete well with industry leaders such as Sony for top-of-mind brand awareness. Several key actions instigated corporate and product improvements since this time. Beginning first with personnel, the Chairman of the company (Kun Hee Lee) started the first movement within that would ultimately lead to their current lucrative position. Lee determined, in 1993, that Samsung could reposition itself as a first-class electronics brand that could distribute products world-wide. Lee wanted to commit Samsung to long term goals and results and transform the company away from commodity based products, and instead produce luxury electronic items that would be highly innovative. At the time, electronic companies could venture into two different routes: software or hardware. The outlook for software development was very good in the 1990s, but Lee chose the route for developing...
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... Since 1997, Samsung has pursued a bold combination of strategies which have allowed it to innovate & produce higher-quality products across all the categories. Those strategies are mentioned below in detail: A. Vertical Integration – manufacturing continued to remain Samsung’s core competence as always. Samsung believed that if it got out of manufacturing then it would loose the edge since everyone could get the same technology but not everyone was capable of making an advanced product. Farming out manufacturing operations would expose Samsung to inventory risks thus its fate would be in the hands of its suppliers and to prevent that, between 1998 and 2003, Samsung invested $19 billion in new chip factories, $17 billion was invested in 2003 in new manufacturing facilities for LCDs used in flat-screen TVs and such. Samsung not only manufactured for customers internal to the company but also external customers, which included Apple, Sony, etc. so as to ensure that its plants remained competitive. The company was also savvy about its choice of plant locations; for example, to keep costs low, it operated manufacturing plants in China, however R&D facilities were set up in India to take advantage of country’s low cost human capital. Samsung also avoided the commoditization trap that allowed the company to command premium margins by manufacturing special order items such as memory chips for Dell, Microsoft and Nokia. B. Hardware Focus – Samsung kept its laser...
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...APPLE INC. CASE ANALYSIS RICHARD CARLISLE COLUMBIA SOUTHERN UNIVERSITY Apple, Inc. was founded in 1976 by Steve Jobs and Steve Wozniak. The corporate headquarters are currently located in Cupertino, CA. In the United States Apple has created or supported about 1,027,000 jobs: 627K due to iOS Ecosystems, 334K due to Apple spending and growth at other companies, and 66K employees nationwide (Apple, Inc., 2015). Despite struggling through the late 1980’s and the recession years of 2008-2009, Apple has maintained its status as a multibillion dollar company. Apple’s Mission and Vision include: Apple's Mission Statement “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices. (Farfan, 2015)”. Apple's Vision Statement “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings (Farfan, 2015)”. Apple’s current strategy and objectives were created by CEO Steve Jobs and have been reverberated by his successor CEO Tim Cook: 1. Offer a small number of products 2. Focus on the high end. ...
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...which is the third industry sector. Next sector is the computer manufacturers like Apple and Dell. After this the value chain has service companies for the computers as well as the retail network to sell the computers as the next industry sector. Betz in this case study reviews Samsung Electronics, an electronics company which created laptop components but moved through the value chain to become a leading laptop manufacturer (Betz, 2011). Figure 1: Industrial value chain (Betz, 2011) Betz describes the evolution of laptop computers from without disk drive earlier model to the heavy IBM and Toshiba models in 1986. Toshiba redesigned the laptop to lighter version and became successful by 1990. With the advance of laptop adoption, operating system company Microsoft and chip manufacturer Intel grew alongside. Samsung became a major global parts supplier for laptops by 2001 (Betz, 2011). In 2001 Samsung proceeded to cross the chasm from being a parts supplier to a computer manufacturer when it sent its laptop, which was thinner and lighter than the market leader Sony Vaio, to Michael Dell. This laptop was sold by Dell in U.S. under the Dell label and helped Samsung move up the industrial value chain. Samsung also displayed how they were eager to get...
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...) Is the Global theme park industry is an interesting industry to be in? Yes. The five forces analysis supports as below. | |Strength of |Explanation | | |Force | | |Rivalry between |Medium |High industry concentration | |established competitors| |Competitors are more specialized than diversified | | | |Significant brand identities and product differences | | | |Industry is growing rapidly but no excess capacity | | | |High exit barriers | | | |Fixed costs are relatively low | | | |Low switching costs for customers | |Threat of entry |High |Strict capital requirement with large-scale initial investment and high upgrading | | | |cost ...
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...Samsung Electronics Company :Global Marketing Operations | Group 6 ■ Introduction & Core Problem First founded in 1969 as a low-quality black-and-white TV manufacturer, Samsung Electronics Company (SEC) has been successfully transformed from a third-tier commodity to a global brand knocking on the door of the premier league, powered by its efficient vertical integration led by Chairman Kun-Hee Lee. In 2003, the company was ranked the 25th most valuable brand of the world. Eric Kim, Samsung's global marketing director, is assessing how to further upgrade the firm’s worldwide brand reputation and reach the top 10 by 2005. Based on the case article, Kim believes that Samsung Electronics Company has a couple issues that need to be dealt with to accomplish the goal 1) Market Position: Though it varies in each market region, SEC is usually considered somewhat performance-based, price- efficient brand appealing to “sensible brand buyer”. However, the demand for more personalized, high-quality devices are becoming increasingly important. It is required for the firm to differentiate its market segments and introduce respective advertising campaigns. 2) However, such campaigns are challenged by a majority of SEC’s human resources who find the concept of marketing doubtful and firmly believe that products should speak themselves by its performance. Their concerns regarding the marketing campaigns’ cost efficiency might even blur the aforementioned motifs for establishing...
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...opportunities and threats this year. Company background Name | Apple Inc. | Industries served | Computer hardware Computer software (iOS, OS X, Safari, iLife, iWork, iMovie, iPhoto) Consumer electronics (iPod, iPhone, iPad, Apple TV and Mac products) Digital distribution (iTunes store, iCloud, App StoreSM, Mac App Store) | Geographic areas served | Worldwide (retail stores in 14 countries and online stores in 39 countries)[1] | Headquarters | Cupertino, California, United States | Current CEO | Timothy Donald "Tim" Cook | Revenue | $170,910 billion (2013) 9.2% increase over $156,508 billion (2012)[2] | Profit | $37,037 billion (2013) 12.26% decrease over $ 41,733 (2012)[2] | Employees | 80,300 (2013) | Main Competitors | Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others. | Business description This is an Apple business description taken from company’s financial report: “The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional...
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