Thursday, April 4, 2019
Diversified in industries and electronics
Diversified in industries and electronicsIntroductionInitially, Samsung started out as a small export occupancy in Korea. It then diversified in industries and electronics. The company has been antiphonal to change and opportunity in global bloodline brought by the digital era with its constant revolution and attractive, marketable returns.1 As a result, Samsung is now positioned as one of the world recognized leaders in the digital technology industry. The Samsung World Headquarters is located in Seoul, Korean. 1HistoryIn 1938, basis chairman Byung-Chull Lee started a small trade export business in Taegu, Korea. In the 1970s, Samsung invested in the heavy, chemical and petrochemical industries as a foundation for future growth. Samsung the likewise incorporated its manufacturing processes from raw materials to end proceedss which get ahead enhance its position in the worlds textile industry. Samsungs core technology businesses diversified and expanded globally during the juvenile 1970s and early 1980s. Soon after, two research and break awayment (RD) institutes were created. This boost its reach even only into electronics, semiconductors, high polymer chemicals, genetic engineering, optical telecommunications, aerospace and new fields of technology innovation from nanotechnology to advanced entanglement architectures. In the mid-1990s, Samsung revolutionised its business aiming to make world-class products, provide total customer satisfaction and be a hot corporate citizen. Samsung has constantly developed advanced technologies, competitive products and constant innovation 1.Main Technologies and CapabilitiesMain Capabilities explore and DevelopmentInnovation is at the heart Samsungs business success. To be competitive in the new digital age, Samsung maintains and strengthens its market dominance through the speedy introduction of new technology. The company has placed high splendour to the interplay of imaginative, imaginative human resource s, a global RD network, a strong collaboration among business partners all a yen the supply chain, and the commitment to ongoing investment. Currently, Samsung is making historic advances in RD of semiconductor products, especially nictitation fund and non-memory, custom semiconductors, DRAM and SRAM, LCDs, meandering(a) phones, and digital appliances1Eco SamsungSamsung has displayed its strong commitment and responsibility for the world environment. It has made efforts to develop environmentally-friendly products which consume low levels of energy and which contain no hazardous materials. The company has besides modified its forum processes to cut down carbon emissions substantially.2Main TechnologiesSamsung comprises of companies that have experience market leaders in a wide range of business, from electronics to financial services, from chemicals and heavy industries to trade and services. All the businesses be setting new standards in innovation, constantly generating hig h quality products and services.3 Owing to Samsungs large RD sector, galore(postnominal) new technologies and ripe excogitations emerge. Below argon a few of the newest technologies developed by Samsung.Main Markets, Products and CompetitorsMarketsSamsung Group consists of numerous international affiliated businesses such(prenominal)(prenominal) as Samsung Electronics, Samsung Heavy Industries, and Samsung CT. These three multinational core businesses of Samsung Group signify their strong foothold in the electronics, shipbuilding and construction markets. Besides that, Samsung also plays a part in the financial, chemical, retail and entertainment markets. 1Samsung reports a strong presence in its home country of second Korea as its market treat in telecommunications is 18.87%. 1 Samsung appeals to the global market as it is the most popular consumer electronics brand since 2005 with 7.55% of global market share in telecommunications1.ProductsSamsung first started moving into businesses such as insurance, securities and retail. Later, upon borrowed foreign investments, Samsung ventured into the telecommunications industry with Samsung Electronics. With the support of due south Korean President Samsung developed the first dynamic random access memory chip. 1Most importantly Samsung are leading in the production of memory chips, chipmakers and liquid-crystal display panels. 1 Considered as a strong enemy in the world of electronics, Samsung highlighted innovative scheme and expanded production rapidly to become the worlds largest producers of DRAM chips, flash memory, optical storage and recently liquid crystal displays. In addition Samsung strives to improve by regressing innovative products such as the TV and monitor industrys thinnest LED TVs and most compact colour laser printers and multifunctional devices. organism a global leader in telecommunications equipment Samsung plays the role in development of the next generation of 4G-network. 1Competi torsAccording to the Figure 1 below Nokia is clearly the main challenger as it holds 37% of the mobile phones sales global market share. In 2009, Samsungs touch screen devices, QWERTY phones and smart phones drove sales in mature markets with 19% of the global market share7. LG poses 11% as a competitor as it moves into lower-tier devices which require growth in emerging markets. It is also well positioned to take advantage of Chinas 3G Rollout as it can take in good-value-for-money devices. Motorola has 11% market share which is basisably smaller, however with its presence rapidly concentrated on the American it serves as a competition in the American market. Being in a competitive market, Sony Ericsson at 5% of the global market share attributes its poor performance to its uncompetitive range of handsets such as exploiting trends like QWERTY products. Therefore Sony Ericsson is a smaller competitor compare to Nokia and other phones such as Apple, HTC, and Blackberry.Nokia is S amsungs biggest competitor due to its early investments in GSM technologies therefore making the company into the worlds largest mobile producer manufacture. Up to construe Nokia produced various(a) innovative products such as the first 3G phones, Ovi internet services and N-series multimedia phone. Nokias revenue is report to be 9.3 million Euros. 9 Its success is due to its high investment in the RD which is present in 16 countries, representing 31% of their total workforce. 8 Nokia phones are also seen as being highest quality as they have a highly recognizable packaging style which operates with an aggressive selling strategy so elevating them above their competitors.Samsungs Innovative ActivitiesSamsungs ambition to become one of the worlds top companies is supported by continuous hobby in innovative RD and building a distinctive brand. As stated in the yearly subject 2008, approximately 40 %( 42,100 researchers) of Samsungs global employees are involved in RD to develop cutting edge technologies1. Samsung ripe(p) Institute in Technology is the global hub of Samsungs RD organization which includes Mechatronics and Manufacturing Technology Centre and 14 everywhereseas centres7. In 2008, Samsung obtained 3,515 patents in the US with an increase from 2007 placing them in second place in the annual patent ranking. To nevertheless push forward in a variety of market and customer concentrate brand marketing programs, Samsung successfully completed their role as the official wireless equipment partner of the 2008 Beijing Olympics and Paralympics Games. 7In 2008, Samsungs investment of 6.9 trillion KRW which represented 9.5% of parent company sales brings in technological breakthrough such as 256GB solid-state drive, 90nm high-performance smart card chip, 82-inch 120Hz quad-HD-resolution TV panel, and a Mobile WiMax II (802.61m) solution.1 This also enables innovations like front-load washers with time, energy and wear-saving bubble wash technology and the industrys most compact colour laser printers. interest these success, Samsung plans to invest 7.9 trillion KRW in RD to support future development of tomorrows technology. 7RD Structure and PrioritiesTable 2 Core business research areas at SAIT10Research in Product AreasDescriptionsComputer ScienceDrives long term differentiation of Samsung platforms(phones, TV) by combining Computer Science with Consumer ElectronicsResearch involves building tangible artifacts like prototypes so that we can learn from the process of building themCurrent research situation awareness, Intelligent sack up Media and trusted platformsSituation awareness develops novel, optimal personalize services leading the next generation of personalized mobile technologyIntelligent meshwork Media pioneers technologies such as new phenomenon in which all TV content is available on the Internet can be streamed or dowloaded directly to the TV certain platforms researches on strong protection of device firmware for network providers and usersWireless ConnectivityResearch in develop a wide range of cutting edge wireless techniques such as beam forming to come out ubiqitous wireless connectivity with various data requirements up to multi-giga bits per secondDigital Media resolving(DMS)Advanced Algorithm engaged in research and development related to theories, algorithm, and application of encounter and video processing for Samsung Digital TVsCore course of study Actively researching to provide Internet Protocol Television to provide internet and cable connectivityFuture user Experience develop user interface designs from conceptualization through prototyping to implementationAdvanced Printing SolutionResearch in Software Architecture Technology enabling the efficient development of increasingly Gordian softwareResearch areas in System Technology involves new features protoypes and etcCurrent and future research areas in Solution Software Technology are core research related to Web tec hnologies and application of Web Services to printersStorageTo develop quiet hard drives with highest storage capacity and lowest power purposeOrganisation of RDSamsungs RD organisation run in SAIT consists of three layers Samsungs technology competitiveness in core business areas identifies growth engines for the future and securing, and management of technology. The RD centres of each business focus on technology that is expected to deliver the long-term results. Division product development teams are responsible for marketing products due to hit markets in a short period of time.From the Figure 2, the organisation is shown to be a hybrid between change and decentralised RD. It is a simplified diagram of the organisation of Samsung RD involving SAIT and two of their centres in their global network of RD. Samsungs RD network consist of six centres in Korea and 18 centres in 9 different countries such as unify States, United Kingdom, Russia, Israel, India, Japan and China. 11 The se various RD centres and their distribution into research areas such as Dallas Telecom science laboratory that research on technologies and products for next-generation telecommunications systems.Innovation StrategyFirms Innovation StrategyBackground and StrategyBy implementing this impudently established RD plan, we can develop the technology that will drive Samsungs future. -Hak-Soo Lee, vice-chairman of Samsung Electronics said.14 Samsung Electronics instituted many RD centres globally to enhance in-house product design. The first centre was established in Osaka, Japan, followed by another in Frankfurt, Germany to focus on products for the European markets.15 In the same year, Samsung Electronics established a research centre to address product planning ask in South-East Asian markets.In November 2000, Samsung Electronics targeted to transform itself into a Digital -eCompany, capable of leading in digital convergence. The company upgraded the development model from division-c entric into portfolio-centri16. This aimed to multiple divisions and units to create integrated solutions for home networks, mobile networks, billet networks and core-component business portfolios. With these initiatives, Samsung Electronics pursued four key areas RD, design, brand marketing and corporate citizenship.Investment in physical body and RDRD is an important innovation strategy at Samsung. RD and design centres developed technologies which is being used to produce products. Samsung Electronics utilise more than 40000 engineers17 in its RD department, and 3,200 held PhDs. Samsung Electronics attributed its leading position in the industry to four main factors creative great deal in the organization who could develop technologies co-operation among business partners throughout the supply chain the firms ability to explore and get into new markets and the speed of innovation and product development18.Users-Centric Design PhilosophySamsung Electronics applied the design philosophy into its products and emphasize that design and creative strengths were at the heart of corporate competitiveness.19 This reflected a concept of a equilibrate between reason and smellings, from which Samsung Electronics developed a scale with reason on one end and feeling on the other to measure perfection of design. The products manufactured by Apple Computer Inc (Apple) set-aside(p) the feeling zone with an emphasis on simplicity of products, whereas Sony products tended toward the reason zone with lots of complex features.20 However, Samsung Electronics designers equilibrize reason and feeling by rationalizing the design of products using geometric and technological parameters and then enhancing the design such that products made an emotional connection with the user.Over 700 highly skilled designers in different design centres conducted various research projects in the fields of industrial design, graphic design, interaction design, human factors, lifestyle resea rch creative business-planning, visual brand strategy, materials exploration, colour theory and computer-aided design.Global Localization strategyGlobal Localization strategy is adopted, through which designers developed product design blueprints according to global design standards and themes, while remaining conciliative bountiful to allow local design centres to accommodate specific market needs and cultural contexts.22 A simple example is explained by, Younghee Lee, vice-president of marketing, that beautiful design of mobile phones could be appreciated by a Parisian or Indian, but noted that the Indian user, who often lacked a reliable electricity supply, needed a longer-lasting battery than a Parisian.23 The Global Localization strategy helped Samsung Electronics establish itself as an innovative and first-class consumer electronics company. face 1 SAMSUNGS DESIGN PHILOSOPHY BALANCE OF REASON AND FEELINGFast FollowerTo overcome the companys image as a producer of cheap produ cts, Samsung Electronss product diversification differentiated the company from its key competitors, many of which were focused on single or smaller numbers of products. Apple, for example, specialised in portable melody players and held a major(ip) share in the global market for these devices. Nokia and Motorola were best known for mobile phones, and Sony focused on consumer electronics. The market trends and technological, also the competitive circumstances impacts on its innovation strategy, which has a lots of reason to reveal that Samsung Electron is fast follower, although some brand-new design of products were launched.Protect its innovationsSamsung Electronics strategy of combining product design, RD and brand management turned the firm into a leader in the consumer electronics market. Samsung Electronics operated six RD centres in South Korea and a total of 16 centres in eight different countries. These RD centres developed technologies that could be commercialised in the near future. The CTO developed proprietary technologies, managed the deployment of key technologies and guided the overall RD process within the organisation. This highly strength of organization system is not easily imitated by the rivals in a short period of time. Thus, it has enough evidence to believe that a large amount of RD spending combined with brand management as well as the effective organization system is able to protect its innovations.Patents and AchievementDuring seven long time from 2001, Samsung Electronics received 19 awards at the outside(a) Design Excellence Awards (IDEA). In 2006, the company registered 17,377 patents worldwide, including patents aimed at fusion technology, nanotechnology and biotechnology24. In 2007, Samsung Electronics held a dominant worldwide market share25for LCDs and TVs. The company unparalleled edge and leadership in RD and design were underscored by awards for 32 of its products at the CES Innovations 2008 Awards.Challenges for the F utureCompetition in the consumer electronics market was fierce, as many global players entered the market with large product portfolios. Digital convergence invited more companies from related industries such as software, PC and network services to enter the market. Entry of such new players further escalate the competition. Competitors of Samsung Electronics such as LG, Nokia, Panasonic, Sony and some Chinese firms had started investing heavily in RD and product design. All major competitors adopted the concept of localizing their product design to suit target markets. The design advantage of Samsung Electronics started to diminish as product design strategies and processes became commoditized. Samsung Electronics had to devise strategies to defend not only its position in the market, but also its profitability in the competitive environment.Advancements in technology had shortened product lifecycles and product replacement had become a key driver for revenue growth. Samsung Electr onics invested about 9% of net sales in RD of newer technologies, features and designs to exsert newer products and attract customers. However, some of its competitors, including Apple, Sony and LG Electronics, had significantly lower RD expenditure per product.Firms such as Philips, Dell and Motorola were adopting outsourcing of product design to lower RD costs and shorten time-to-market. These brands were buying product blueprints and technology from specify manufacturers and independent design firms such as IDEO, Quanta Computer, Premier Imaging, HCL Technologies and Wipro Technologies. Companies took varying approaches to design outsourcing. For example, HP contributed key technology and design to its computers, whereas Dell preferred to adopt entire designs from its design partners. Motorola bought complete designs for its low-end mobile phones but kept tight control over the development of its high-end cell phones, such as the Razr.However, outsourcing of product design an d RD raised serious concerns about knowing property rights, product management, integrity and incubation of new competitors. For example, Motorola outsourced the design and manufacturing of its mobile phones to Taiwanese manufacturer BenQ. In 2004, BenQ started selling the mobile phones in the Chinese market under its own brand, which resulted in termination of its contract with Motorola. Considering the immediate urge to optimise RD costs and potential concerns associated with design outsourcing.ReferencesSamsung INC. (2009) Online Available from http//www.samsung.com/uk/aboutsamsung/corporateprofile/history03.htmlSamsung INC. (2009) Online Available from http//www.samsung.com/global/business/semiconductor/aboutus/ESH/ESH.htmlSamsung INC. (2009) Online Available from http//www.samsung.com/uk/aboutsamsung/corporateprofile/affiliatedcompanies.htmlSamsung INC. (2009) Online Available from http//www.samsung.com/uk/aboutsamsung/ourbusinesses/businessarea/devicesolutionsbusiness.htmlGar tner Newsroom http//www.gartner.com/it/page.jsp?id=1126812Nokia Connecting People Story of Nokia http//www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolution/leading-the-worldAppsolutely Everything Samsung Market Share http//stats.getjar.com/statistics/world/manufacturer/SamsungNokia Mobile Revolution http//www.nokia.com/about-nokia/company/story-of-nokia/mobile-revolutionNokia Biz Covering http//bizcovering.com/major-companies/nokias-revenue-lowered-with-twenty-seven-percent/Samsung Research and Development http//www.samsung.com/us/aboutsamsung/ourbusinesses/researchdevelopment.htmlSamsung RD Center(SISA) http//www.sisa.samsung.com/default.htmKim, Y. (1997) Technological Capabilities and Samsung Electronics International end product Network in Asia, BRIEKim, Y. (1997) Technological Capabilities and Samsung Electronics International Production Network in Asia, BRIE Working authorship 106, p. 20Newswire (8 November 2005) Samsung Companies Announce 5-Year, 47 Trillion Wo n Investment PlanKim, Y. (1997) Technological Capabilities and Samsung Electronics International Production Network in Asia, BRIE Working Paper 106, p. 26Samsung Electronics (2001) Annual ReportSamsung Electronics (2007) Annual ReportSamsung Electronics (2007) Annual ReportSamsung (2006) Annual Report, p. 41.Breen, B. (2007) The Seoul of DesignDelaney, M., et al. (2002) Global Localization, Global Design and heathenish IdentityIbid., p. 44.Ewing, J. (2008) Samsungs New Marketing Push, BusinessWeekSamsung Electronics (2006) Annual ReportSamsung Electronics (2007) Annual Report.