Samsung – Turnaround StrategyEssay Preview: Samsung – Turnaround StrategyReport this essaySamsung Electronics Company: Global Marketing OperationsWhat are the ingredients of SECs corporate turnaround strategy?Samsung Electronics Company originally started as a product-driven company that focused on manufacturing commodity products at lower costs than its competitors. It was established as a top OEM supplier and highly efficient manufacturer of value brands. The “new management initiative” launched by Chairman Kun Hee Lee in 1993 aimed to change SECs direction of growth: once costs were under control and products were made, SEC changed its focus from low-end commodities to high-end premium goods. Currently, SEC has become a world class brand among the top companies preferred globally.
The following essential changes were implemented during different stages of their turnaround strategy:Vertical IntegrationKept manufacturing as a core internal competenceInternal manufacturing units have to compete with outside companies for supplying components for production of finished goodsFlexible to plant locations where costs were low (i.e. China or India)Focus on customization of its production to keep high pricesHardware FocusDecided not to produce proprietary softwareFormed partnerships with content providers and allowed customers to chooseProduct diversificationFocused on higher quality products across all categoriesSamsung was one of top 3 brands by market share in all its major productsUnique,
Focused on the quality of its own manufacturing and its design technology for its smartphones, TVs, desktops, etc.This decision was made for both companies, but also based on a broader set of internal and external prioritiesSamsung Electronics Co. Ltd. (Samsung Group) has decided to create a new unit:
Samsung Electronics Co. Ltd. is the company leading the brand direction for the next 45 years from a wholly owned subsidiary at the heart of the Samsung Electronics Co. Ltd (Samsung Electronics) Limited, which means Samsung Electronics, the world’s leading premium maker of Samsung products.
As is widely expected in the smartphone industry, it is also going to focus on building the latest in advanced technology to be able to dominate the smartphone market.
During various periods, Samsung Electronics has become one of the more important brand names in the smartphone landscape, leading the competition and has been valued by a wide range of investors including Citi Research, Westor and many others.
Through numerous innovative and collaborative partnerships, Samsung Inc. and Samsung Electronics are building a new brand and technology leadership brand in the industry.