Struggling Samsung Electronics University of the PotomacStrategic ManagementFebruary 16, 2021Professor Petya Nikolova AbstractThis case is talked about battling of Samsung Electronics. Samsung was established in 1983 in South Korea fundamentally selling noodles and fish and new spends significant time in ventures like hardware, synthetic compounds, shipbuilding, monetary administrations and
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Struggling Samsung Electronics
University of the Potomac
Strategic Management
February 16, 2021
Professor Petya Nikolova
Abstract
This case is talked about battling of Samsung Electronics. Samsung was established in 1983 in South Korea fundamentally selling noodles and fish and new spends significant time in ventures like hardware, synthetic compounds, shipbuilding, monetary administrations and developments. In 1993 was a urgent point for Samsung where they needed to reexamine themselves on the grounds that their hardware were falling behind the Europeans and the United States. Samsung rethought them into premium gadgets to move to the higher finish of the market. Samsung style's of key administration style is battling on the grounds that it plays the make up for lost time games with contenders, similar to Apple. They utilize the 'follow first-innovate second" rule, which let them permit to security deal their items in the market.
What makes Samsung a conglomerate? What type of diversification does Samsung pursue? Identify possible factors such as core competencies, economies of scale, and economies of scope that were the basis of its past success as a widely diversified conglomerate (chaebol). Why is Samsung as a conglomerate struggling today?
2. Despite being a widely diversified conglomerate, Samsung prefers vertical integration: in-house design and development teams, manufacturing in large company-owned factories, and coordinating a sprawling global supply chain. In contrast, Apple concentrates on the design (and retail sales) of high-end mobile devices, while it outsources its production to Foxconn and others. Do you think Samsung’s high degree of vertical integration contributed to its recent problems? Why or why not? Explain.
References
Strategic Management, 3Rd Edition: Frank T. Rothaermel ... (n.d.). Retrieved from https://www.amazon.com/Strategic-Management-3Rd-Frank-Rothaermel/dp/9353163447
Samsung Electronics. (2020, June 15). Retrieved June 20, 2020, from https://en.wikipedia.org/wiki/Samsung_Electronics
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