A Strategic Analysis Of Samsung's Strategies

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Samsung has acquired an international competitive advantage through a transformation from a classical firm which emphasized on only size and cost cutting to a new position that take the advantage through a technology. The key element to penetrate the market is done thought the focusing in design innovation, which Samsung has done great efforts to develop it.
A design innovation was recognized from one of Samsung top management team, Lee, the chairman of the group, when he has visited Los Angles. He realized that a design improvement would play a great role in the company strategy to shift the firm from the local to the global market. Noria Ohga, Chairman and CEO, SONY, said that “At Sony, we assume all products of our competitors will have …show more content…

These are as a road maps in defining any kind of business. “They contain our basic assumptions about key relationships in business life. Theories tell us what to look out for, what our first steps should be, and what to expect as a result of our actions... They are short cuts to actions”. To apply those theories into Samsung’s strategy, it was figured that the best two strategy theories which are related would be THE PROCESSUAL and THE SYSTEMIC APPROCHES which will be analyzed critically in the following …show more content…

Its managements were relaying on their rational actions taking into account the cognitive limits which are adopted by the people in general. When (Lee) has travelled to the USA, he discovered that they were way behind the American products in term of design technology, so he has accepted it in his mind that the process in Samsung’s operations need to be changed. So he was thinking rational as he saw the Samsung products got neglected by the buyers of electronics. This cognitive limits are one of the main themes and fundamentals of the processual approaches which have been extended by Henry Mintzberg (1987,1944). People are only “bounded rational” (Cyert and March, 1963) and biased in their thinking. The second theme is the micro politics of organizations which was developed by Andrew Pettigrew (1973,1985). It states that people are not cooperated while operating their business towards meeting their objectives. Every team member is trying to bargain against each other to arrive at common ground which are acceptable to them. This approach is called “political bargaining” which was adopted in Samsung’ strategy in different level. Looking into the process change of Samsung, it was found that Samsung redesigned its process to develop the design delivery process. Designers began to get the lead during the process of

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