Company Case 8- Samsung: from Gallop to Run Essay
1] How was Samsung able to go from copycat brand to product leader?
Samsung started out as a maker of cheap consumer electronic knock-offs. CEO Lee Kun-hee has taken major strides to make Samsung the company it is today. In 1993, Lee unveiled what he called the “new management,” which was a top-to-bottom strategy for the entire company. Under Lee’s new management, he took Samsung Electronics in a very ambitious new direction. His goal was to make Samsung become a premiere brand that would dethrone Sony as the biggest consumer electronics firm in the world. Instead of being a copycat, Samsung was to become a cutting-edge product leader. As part of Samsung’s revamped strategy and positioning, …show more content…
3] Based on the product life cycle, what challenges does Samsung face in managing its high-tech products?
Samsung CEO Lee Kun-hee admitted that the world’s largest technology firm’s current main products may likely become obsolete within the next ten years. This forward thinking has CEO Lee in reform mode. He has dubbed Samsung’s newest strategy mabuljungje, which is a Chinese axiom that means “horse that does not stop.” In a memo to Samsung employees, Lee stated, “The ‘new management’ doctrine for the past 17 years has helped catapult the company into being one of the world’s best electronics makers. Now is not the time to be complacent but a time to run.” As with any truly forward thinking, innovative company, Samsung does not claim to know what will replace today’s products as they become obsolete. Rather, it is investing heavily to ensure that it is the company that develops them. Samsung recently unveiled a $23 billion investment plan, its biggest to date. Much of this budget is earmarked for capital expenditures, new equipment, and plants to ensure that Samsung stays ahead of the game. The rest of the money will be used for research and development. Samsung risked losing market