Samsung Strategy

In: Business and Management

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Words 5673
Pages 23
ZENITH
International Journal of Multidisciplinary Research Vol.2 Issue 3, March 2012, ISSN 2231 5780

A COMPARATIVE STUDY OF BUSINESS STRATEGIES BETWEEN KOREA AND JAPAN: A CASE OF ELECTRONICS ITEMS BETWEEN SAMSUNG AND SONY
CHOONG Y. LEE *
*Daniel Froes Batata, Ha Sook Kim, Gladys A. Kelce College of Business, Pittsburg State University, Pittsburg, KS 66762, U.S.A.

ABSTRACT Sony, one of the world‟s most prominent companies in the electronics industry from Japan, has dominated the markets from all over the world for a long time since 1970s. Over the last decade, however, it has faced challenges to maintain its growth. Although sales levels have been relatively steady over the last decade, its profitability has gone from approximately eight to almost zero percent in 2009. Concomitantly, Samsung Electronics from Korea has successfully overcome the challenges presented in the global market. During the same period, its sales have increased over 600 percent and its profitability in 2009 was over ten percent. Additionally, the company has gained prestige in the minds of consumers and enjoys a privileged position in the electronics industry from all over the world. This paper discusses the reasons why the companies have had different performances in the markets and examines their challenges for the future. KEYWORDS: Comparative Study, Business Strategies, Electronics Industry, Korea, Japan. ______________________________________________________________________________ INTRODUCTION The electronics industry is one of the most dynamic markets today. New technologies are daily launched into the market and the life cycle of electronic products is extremely short. In order to survive, companies and countries have to be in constant search for improvement and innovation. Two of the major companies in this market, Sony and Samsung Electronics, have adopted different strategies…...

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