Case Study: Samsung Group

Samsung Group is a Korean conglomerate led by its Chairman Lee Kun-Hee, son of the founder of Samsung. The Samsung group consists of 83 companies incorporated in Korea, some with closer links than others, some independently listed in the stock exchange. Each and every major company has affiliates in Korea and overseas, and the group collectively represents about 1000 business entities globally. It should be noted that the Group is loosely coordinated through the Chairman’s office, and there is, at this time, no formal holding company. However the group companies act as a family – for example the containers of Samsung Electronics’ products would normally be handled by Samsung Electronics Logitech, through systems maintained by Samsung SDS on

Which tells about the needs and wants of the customer.

Second: It can recognize the power of well-designed products and services.

Third: The Company has strong design philosophy.

Fourth: Samsung tries to create that type of design that reflects users, lifestyle and can interact with them.

The Chairman of Samsung, Lee told his employee’s “attack bravely and timely”, Further he told to hold a sense of crisis when going well and attack when actual crisis occurred. Samsung mainly focuses on technology resources which is the driving force for them.

When Chairman Lee was appointed as the member of international Olympic committee he mentioned first about the brand. He told that the Samsung brand which is now considered as the low brand should be upgraded as a high end brand for the customers. Very firstly, consistent quality is the main factor for a quality brand. Also the design should reflect the culture and philosophy of the organization.

Many slogans were made to create consensus about fundamental innovation, like:

“Change begins with me”

“Start with the easy tasks”

“Start changing

Also by introducing merit pay, focusing on innovation, Samsung has developed a world class company.

The purpose of this research activity is to find the key factors of the strategic management of the Samsung’s electronics company through the Value Chain Model. So. I have analyzed how Samsung has transformed itself from a mediocre OEM to a world class company with a strong brand name and a range of premium products after the declaration of new management system in 1993.

In strategic management the value chain represents a series of activities within the organization that provide value to the organization in terms of high quality of products or services.

2 decades ago, very few people would have predicted that the Samsung Electronics could transform from a small OEM to a big manufacturing giant leaving behind companies like Sony, Nike and American Express. The main competency of the Samsung Electronics is the mixing of both Japanese and American style of management resulting in a low cost manufacturing process with excellent quality of product and