1. What was the critical activity in the process of Samsung’s transformation into a worldbeating developer of new cell phone handset designs and other product line designs? Samsung Electronics Company decided to eradicate lowend subdivisions and focus solely on improving the Samsung. This was achieved by investing heavily in design and product quality. Within a decade Samsung improved their reputation by incorporating product and innovative processes.
2. Provide the evidence from the case above, giving examples of the three crucial competitive advantages a firm must have according to the dynamic theory of competition presented in Module 1.
I. Adapted to learning new ways of serving customers and reducing cost: b. Understanding user interface: Samsung has a “usability laboratory” to observe how consumers open boxes and how they read or not read instructions, nor follow icons on cell phone screens in order to ensure their product is user friendly. Samsung practices the pragmatic philosophy of “Everything should be made as simple as possible, but not simpler.” (Einstein)
II. Samsung employs and encourages a “Bureaucracy means death” philosophy: Samsung’s Research & Development center operates 24 hours a day 7 days a week providing material comforts for creative directors and engineers to solve tough product specifications and design problems. Samsung also provides continuous learning and
inspiration to its young and hip designers by sending them abroad to places of design excellence in order to develop fresh ideas that can be incorporated to product design. III.
Time management: Samsung understands the importance of developing new generation products faster and better than competitors in a competitive market. Samsung’s change management has resulted in competitive advantages such as lower manufacturing costs, quicker time to market and efforts resulting in awards for excellence in industrial design.
3. Yesterday’s best practice in product development is presented in the module. Where is it criticized in the case? Samsung’s approach to product development is a modern one that resembles a liberal and fun workplace as opposed to a traditional corporation overrun by naysaying lawyers and executives. The designers and engineers are to eat, sleep, and breathe the improvement of Samsung’s products. However, yesterday’s product development theory had the company create an idea, see how the product would succeed in the market by using an inadequate five step process.
4. Analyze price strategy, distribution strategy, or promotion strategy of Samsung in the U. S. and compare with one other country in South America, Asian, or Europe.