SAMSUNG ELECTRONICS: SUCCESS BY DESIGN case study (Strategic management)

1. SAMSUNG ELECTRONICS:
SUCCESS BY DESIGN
STRATEGIC
MANAGEMENT

2. SUMMARY
 The Samsung group was founded by Byung-Chull Lee in 1938
In Korea.
 In 1966thr group funded JOONG-ANG development an
entrainment and service company
 In 1987 Samsung was set up a advance institute of technology
 In 1969, Samsung electronics
manufacturing co. was incorporated.
 “second foundation”- to become
modern world class
corporation – 1988
 The 1990’s saw a series of
technological innovation
 In 1984 SEMC was renamed
as Samsung electronic

3. SAMSUNG’S FOCUS ON DESIGN
INNOVATION
 Journey towards excellence started in 1993.
 Display looked unattractive compared to
competitors.
 Ignorant behavior of sales personnel
 Too much attention to volume & cost of
production
 Policy of focus on quantity
rather than quality
 Beginning of design era in
the country

4. DESIGN PhILOSOPhY
 Incorporation of Korean values
 8th century Buddha, - “Balance of Reason & Feeling”
 Reason is sharp-edged & very geometric
 Feeling is soft & organic
 Reason & feeling
approach had six
“guiding principles”

5. SAMSUNG’S DESIGN STRATEGY
 Creating Global Brand Identity Samsung ‘word mark’ logo.
 Implementation of Global Brand Communication Strategy.
 New Design management Centre at Seoul in South Korea .
 Opened Usability Lab.
 World wide Design centres of Samsung.

6. BRINGING cUlTURAl chANGES
 Efforts were made to first create a design-friendly culture.
 But ACCD curriculum just did not suit the culture at
Samsung initially.
 E.g. south Korean encouraged to ask question to elders
according to curriculum.
 Realisation of to come out
of environment.

7. SYSTEMATIc & pRocESS
chANGES
 Samsung redesigned its system and process to improve the design
delivery process.
 Designers began to enjoy as much, if not more ,authority as
engineers and marketers.
 Collaboration between different departments
became a key aspect of
new product development.

8. SAMSUNG’S DESIGN SUccESSES
 Popularity of bulkier projection TV’s was waning
 One of the best-selling brands in large high-end TV’s
 List of IDEA winners
 20th position in Top
100 Global
brand survey

9. ConvergenCe produCts
 Providing great looking , hybrid products
 Vision was “To lead the digital convergence revolution”
 Samsung launched –
Camera phones
 DVD player
 Refrigerator

10. CritiCism
 Lack of coherent design.
 Some designs were poor.
 Unrealistic price.
 Poor user interface.
 Development goof-up.

11. design for a Competitive
edge
 Design a differentiating factor.
 Price premium.
 Customer loyalty.

12. outlook
 Sync master 971P
 New Partnership
 Elite CNB (Creating New Business) Group
 Net profit of $ 2.16 trillion