Samsung Strategy Analysis

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Samsung is a South Korean multinational conglomerate company. Headquarter is located in Samsung Town, Seoul. In 1938s, Samsung was founded by Lee Byungchul as a trading company. He diversified his group into different area such as processing, textiles, insurance, securities and retail. After lee’s death in 1987, Samsung was separate into four different groups– Samsung Group, Shinsegae Group, CJ Group and Hansl Group. Since 1990s Samsung has increasingly globalized electronics and activities. Especially, mobile phone and semiconductors have become its most important source of income. From GSG(2010), which is the research team of Samsung, Samsung is operating in over 50 countries worldwide. Samsung Group has 369,000 employees in 510
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Samsung electronics mainly focus on five sectors. For instance, Icd network, multimedia, digital applications, telecommunications and semiconductor. Since 1993 to 2003, Samsung create new trends in commercial operation of Samsung electronics in ten years.

Looking into development of Samsung’s mobile, the first thing that they have come up is galaxy note 2. Until now the newest version of mobile this is Galaxy S4. With the new trend of Samsung. The cost of producing Galaxy S4 was cheaper than note 2 and with more features with Galaxy S4. According to Chris (2013), the reasons why galaxy S4 was cheaper than note 2 because note2 has a larger displayer screens and including S pen Stylus. Galaxy S4 was smaller, thinner and lighter and the camera has a better sensor.

In terms of the performance imperatives: quality, speed, dependability, flexibility and cost. According to Quentyn(2013), in the beginning they were quit worried about their quality against other mobile phone. At first they were using plastic designs and everyone have move on metal or higher quality plastic design. Eventually, Samsung is producing a very good quality mobile because they are using aluminum instead of plastic. It makes consumer choose their
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As a Samsung company, they are already applying supply chain management. Supply chain management aims to reduce the costs of transaction, differences within output and input prices and setting up the production technologies’ maintenance as well as carbon emission. This means that Samsung needs to make effort on supply chain management by rising a consider amount of money into manufacturing. Samsung’s operation aims to minimize the emission of carbon dioxide from semiconductor manufacturing. They are always following all the regulations from local government. Between 2001 and 2013, Samsung has reduced their carbon emission from 100% to 30%, which is 70% reduction. Samsung is measuring their carbon emission through Smokestack Automatic Measuring Devices in real-time. Once the air pollution is emitting over their standard, Samsung will immediately lower down. They are strictly control the emission 30% above the acceptable limit. The benefit of SCM is that it will try to lower the cost of material, waste and energy. However, some places like in china, company do not want to spend extra money just on the reduction on carbon emission. Supply chain is defined by Christopher (1998) “the network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer”.

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