2012 02 03 020736 Samsung
1. How was Samsung able to go from copycat brand to product leader?
Formerly, a company that produced cheap electronic knock-offs, Samsung has emerged as a premier maker of cutting-edge, design-oriented electronics. Beginning in the 1990’s, under the new leadership of CEO Lee Kunhee, Samsung changed their corporate vision. The company established a goal of unseating rival Sony as the industry leader in consumer electronics. The company hired new, young product designers who introduced a bevy of innovative, stylish products that began to catch the eye of consumers worldwide. Samsung also began to market its products in electronic stores, rather than in just all-purpose discount department stores, to upgrade their image. In just over a decade, Samsung became the overall leader in consumer electronics.
2. Is Samsung's product development process customer centered? Team based? Systematic?
The product development process of Samsung can be categorized as all of the above. It is customer-centered in that it addresses consumer needs and desires and focuses on creating products that appeal to the customer. Samsung has devoted itself to the philosophy of creating only new products that elicited a “wow!” response when test marketed, letting customers be the initial judges of the products’ merit. Product development is team based in that members from different departments collaborate on the development of a product from beginning to end (rather than having the process pass from one department to the next), in an effort to increase effectiveness and get new product concepts on the market as quickly as possible. The company’s approach is also systematic. Samsung focuses on collecting and evaluating ideas for new product concepts from all stakeholders in an effort to develop the optimum storehouse of information and ideas from which to create cutting edge electronic technology.
3. Based on the PLC, what challenges does Samsung face in managing its high-tech products?
Formerly, a company that produced cheap electronic knock-offs, Samsung has emerged as a premier maker of cutting-edge, design-oriented electronics. Beginning in the 1990’s, under the new leadership of CEO Lee Kunhee, Samsung changed their corporate vision. The company established a goal of unseating rival Sony as the industry leader in consumer electronics. The company hired new, young product designers who introduced a bevy of innovative, stylish products that began to catch the eye of consumers worldwide. Samsung also began to market its products in electronic stores, rather than in just all-purpose discount department stores, to upgrade their image. In just over a decade, Samsung became the overall leader in consumer electronics.
2. Is Samsung's product development process customer centered? Team based? Systematic?
The product development process of Samsung can be categorized as all of the above. It is customer-centered in that it addresses consumer needs and desires and focuses on creating products that appeal to the customer. Samsung has devoted itself to the philosophy of creating only new products that elicited a “wow!” response when test marketed, letting customers be the initial judges of the products’ merit. Product development is team based in that members from different departments collaborate on the development of a product from beginning to end (rather than having the process pass from one department to the next), in an effort to increase effectiveness and get new product concepts on the market as quickly as possible. The company’s approach is also systematic. Samsung focuses on collecting and evaluating ideas for new product concepts from all stakeholders in an effort to develop the optimum storehouse of information and ideas from which to create cutting edge electronic technology.
3. Based on the PLC, what challenges does Samsung face in managing its high-tech products?