In the production of technology, Samsung is a major leader. It is a business that focuses not only on constant technology advancement, optimising shareholder value, but also being a world pioneer in corporate citizenship and improving engagement with its clients, partners and local communities. Samsung is consistently seeking economic development along with optimistic growth, which is a road to realising the “Vision 2020” of the organisation. Samsung aims to utilise revolutionary technology, designs and goods to encourage the planet to enrich people’s lives while leading to a socially conscious future at the same time. Samsung recognises creativity as the germ of innovation and invests in a large variety of programmes and projects that improve the entrepreneurial spirit and the freedom of its staff around the business (Mahlich & Pascha, 2012).
Business Divisions and Products
Samsung Electronics is split into 10 corporate units composed of three primary divisions: Consumer Electronics (CE), IT and Mobile Communications (IM) and Computer Solutions (DS). The business of Consumer Electronics (CE) comprises of Visual Show Business consisting of TVs, Home Theater, Monitor, Sound bar and Set-top box. Secondly, the Automated Device Company comprises of a laundry machine, microwave, air conditioner, smart microwave, and air purifier. Thirdly, the Malfunction Printer (MFP) and Printer Printing Solution Business. The Health and Medical Equipment Company, including Optical X-ray and in-vitro diagnostics, is the last division of this business (Robbins, et al, 2014).
The second market group consists of the Mobile Communications Business’s IT and Mobile Connectivity (IM) and comprises the Computer, Tablet Computer, Portable Computers and Notebook PC Mobile Communications Business. The second subdivision is the WiMAX, W/CDMA and LTE system Network Business. The second subdivision is the Network Business. Media Solution Hub, consisting of Samsung Games, Community Play, ChatON and WatchOn, is the last section of this subdivision. The final company segment is System Solutions, which consists primarily of DRAM, SSD, eMCP and NAND Flash Memory Business. Secondly, Mobile Ap, CMOS image sensor, and Foundry compose the Device LSI Company. LED companies consisting of LED packages for TV and IT products, LED lighting packages, and LED packages for automotive lighting are the last category of this subdivision.
Consumer Electronics Division
Samsung’s consumer electronics division has many groundbreaking items that have across the years delighted customers. Samsung has offered items such as PDP, LCD, LED and UHD TV. Over the years, Samsung has retained the first spot in total LCD-TV and FP-TV revenues for 8 straight years and has thus been able to capture the “Triple Crown.” Since the organisation is a pioneer in creativity, it created the first LED TV in the latest device segment worldwide in 2009, essentially cementing its position. The organisation has launched the 3D Final Solution in 2010, which has dominated the 3D TV sector. In addition to launching SMART Hub with numerous offerings, the firm has continued its creativity spree and introduced “Samsung Apps,” the world’s first TV app store, thereby determining a brand name that ties Smart TV to Samsung.
Samsung Electronics has also expanded its family-friendly offerings by developing material that helps consumers to practise or workout whilst viewing TV. Furthermore, by strengthening a “All Share” feature that enables easy connections with other digital users, the business has maintained its supremacy in the smart TV industry. In 2013, Samsung also introduced new UHD TVs with superior picture quality and high definition compared to the ones that had existed before. By focusing on markets with strong growth prospects, such as Curved UHD TV, the organisation plans to maintain its market lead in the future.
The IM Division cements the leadership of the company in the global sector. Thus, Samsung Electronics introduced its entry models for smartphones and tablets in 2013, including big enterprises, thus growing industry rivalry. The business therefore diversified its product portfolio from luxury smartphones to mass consumer devices, innovating innovative products such as Note and LTE. Samsung’s strategic models such as Galaxy Note and Galaxy S4 Series strong sales helped solidify the influence of the company internationally and subsequently increased the profitability and sectors of the IM industry dramatically in 2013 with revenue volumes of revenues. In addition to capitalising on the best research and development resources in the sector, Samsung Electronics has continued to improve its position in the luxury segment by focusing its innovation on tablets and smartphones with new product groups such as Samsung Gear, flexible display and Samsung Suit, while retaining its investment in growth (Mahlich & Pascha, 2012).
The company’s DS division is oriented toward resurgent development. It maximises the benefits of cost savings by leading-edge process production and growth, with Samsung becoming a pioneer in the semiconductor industry. For example, the company’s Memory Sector improved operating income and sales in 2013 due to increased production after – demand for server and mobile goods. Through increasing its 20nm product mix, Samsung is meeting consumer demand for DRAM. The firm has managed to expand stocks of more profitable goods such as server/mobile DRAMs, making more sustained gains than rivals. Samsung succeeded in the creation of the world’s first vertical NAND by utilising its cutting-edge technologies. Samsung is actively working to develop high-performance solutions (SSD, eMMC, etc) as well as 3-bit products in order to further widen the competitive gap. The organisation aims to continue to advance its Memory Market by improving cost effectiveness and delivering distinct product lines in the future.
The Show Division, on the other hand, strengthens the framework for both futuristic creativity and advancement. For its large panel company, Samsung electronics increased quality by improving manufacturing through its entire line of TFT-LCD technologies. Samsung has provided a full range of mega-sized TV devices, including the creation of the first curved TV in the world. In addition, to increase cost efficiencies, the organisation continues its efforts to build highly clear panels and localise key manufacturing equipment. The organisation further seeks to improve its relationship in product and technological growth with consumers in order to achieve the highest rate of usage in the market and continue to optimise its profitability. Through exploiting its China fab, where mass production started in 2013, Samsung aims to expand its accessibility to the Chinese industry, which is the world’s largest TV customer. Samsung proceeds to boost its competitiveness through successfully selling the first flexible panels through utilising AMOLED technology along with raising its production ability by more productive production.
In addition, Samsung has managed to improve its market leadership in numerous fields, including TVs, semiconductors, displays and digital appliances. For the 2nd straight year, Samsung’s worldwide market share of its core items containing cell phones, TVs and DRAM chips surpassed 20 percent in 2013. By utilising cutting-edge technologies as well as premium goods, the business contributes itself to delivering value to its clients.
Since consumer electronics influence almost every part of the everyday life of people, refrigerators, TVs, vacuum cleaners, air conditioners and washing machines compose the essential consumer electronics goods of Samsung. The TV company of Samsung has continued to introduce groundbreaking products annually and has established the following tactics to sustain its search of creativity. Thus, by delivering the best image quality, the business will continue to be a pioneer in the UHD-TV industry while at the same time offering the maximum screen size along with various form factors, such as its curved TV, which is the world’s first curved concept that provides the most interactive viewing experience with unprecedented image quality.
The organisation would also improve its core competencies further, reaching outside the scope of each rival by providing the best image content generated by its own image engine and allowing use of innovative design to have various product lines. In order to extend its Smart TV market, in addition to numerous resources and content, the company’s Smart TV will be fitted with an extra handy user interface to deliver a new and enhanced user experience, thus advancing a smooth short-term link with mid-to-long-term growth engines. The Digital Appliance Market has been static and has not undergone a technological breakthrough in over a century since the domestic preference for digital appliance goods varies significantly and typically requires a more substantial expenditure relative to other digital products. Samsung claims that it is time for the appliance business to adopt disruptive market-changing disruption. Samsung believes that it has what it takes to lead in such a change and is prepared to establish a new luxury refrigerator segment that incorporates numerous creative technologies, such as a smarter food storage and preserving strategy, offering consumers greater satisfaction and energy
New possibilities are currently abounding. Thus, for example, the demand for tablets and smartphones has risen exponentially since 2010, causing cell phones to gradually outperform PCs in the process. Latest technology such as online computing, big data and UHD video are both potential growth drivers alongside premium data corporate SSDs and centres. Not just through innovative creativity, but also through increasing sustainable practises and solutions, Samsung electronics can continue its path of winning its position at the peak of the industry. The organisation strives to excel in this by being “a step ahead” of its peers in creating Renewable Memory technologies that are capable of constructing a more competitive market climate by strengthening IT corporations’ energy efficiency. Since 2009, by capitalising on innovative processes, Samsung has focused on creating the most successful Green Memory solutions. Secondly, Samsung plans to harness technical breakthroughs and generate the IT demand for net-generation. By mass processing 3D vertical NAND memory (V-NAND), the organisation has achieved in this by minimising power usage and being able to last 10 times longer relative to current Planar NAND memory. V-NAND-based SSD products that surpass the limits of current nano-level semiconductor technology have been continuously produced by the firm. Finally, in addition to ultra-thin dielectric layer forming technology, Samsung is implementing revolutionary developments in its development process that incorporate a new concept known as “modified double patterning photo lithography technology,” all of which exceed the limits of the existing manufacturing process and enable mass production of the next generation 10-nano DRAM. Via ultra-thin regulation of dielectric layer-developing cell capacitor materials in Angstrom (a tenth of a nanometer), Samsung has developed standardised dielectric layers away from the current nanometer unit, thereby providing next-generation devices with much better cell aspects. This has helped Samsung to continue designing green IT technologies for word-wide IT customers at the highest degree of ultra-power saving (Robbins, et al, 2014).
Innovative Policies
Samsung unveiled “Vision 2020” in 2009 with a series of definite objectives using the slogan “Inspire the World, Create the Future.” Thus, Samsung under this vision pledged to become one of top global firms with $400 billion in sales, as well as transform into an unparalleled industry leader, positioning its entire brand value amongst the global top 5 thus becoming the top 10 most respected companies in the world. The company since then has continued in its endeavors to accomplish these objectives, while striving to develop core advantages on a continuous basis. Consequently, because of such endeavors, Samsung has accomplished a historic financial performance, providing record sales of KRW 229 trillion in addition to an operating profit of KRW 37 trillion that has grown by 15% and 52% respectively in comparison to 2009. Samsung, in 2013, was also recognized externally for non-financial excellence, when it was ranked by Interbrand as the 8th Most Valuable globally. Additionally, Samsung has been ranked by Fortune magazine as the 21st Most Admired Business globally.
Enhancement of 6 Core Competencies
In order to maximise the consumer experience, Samsung aims to extend its market portfolio and offerings by integrating customer demands with IT technologies to cover healthcare and education. As protection, health, comfort and security continue to consume our lives over the next few years, Samsung is therefore designing directly focused components and products, while at the same time focusing on devices that promote a smarter existence. Therefore, the organisation is ideally equipped to deliver these integrated services by incorporating the unit, part, together with system levels. The company’s ability to shape emerging global developments and its ongoing dedication to investing in research and development would ensure that this vision is achieved (Mahlich & Pascha, 2012).
Samsung has established six main aspects-capital spending (Capex), trademarks, innovation and development, human resources, marketing and M&A to build modern growth engines in order to fulfil the Vision 2020 targets of meeting $400 billion annual revenue, thereby being a pioneer in the IT sector as well as one of the top 10 global businesses. Over the years, Samsung has managed to spend 46.4 trillion KRW in large-scale acquisitions, while at the same time aiming to improve its strategic position through differentiated profitability and technology. The Umyeon-dong R&D Center is approaching completion this year, with a gross floor area of 33,000 square metres. Samsung plans to train 10,000 tech and architecture researchers for the state-of-the-art complex. In addition, Samsung is constructing a Silicon Valley California Research and Development Center that is expected to be built this year to concentrate on critical technology development. Samsung has also invested in research and development in order to ensure economic growth, rising from KRW 9.4 trillion in 2010 to KRW 14.8 trillion by the end of 2013. The amount of global research and development firms has grown from 50,000 in 2010 to 63,000 in 2013. (Robbins, et al, 2014).
Samsung has been following up enforcement monitoring framework initiatives as well. The organisation is therefore making intensive efforts as a global citizen to perform its obligations and tasks. The fundamental principles and rigorous code of conduct of Samsung are at the heart of each decision it produces. In order to guarantee accountability and justice, Samsung’s policies are driven by a spiritual framework combined with legal as well as lawful enforcement with norms and regulations. As part of these measures, Samsung has gradually expanded the number of its workers in order to handle and sustain enforcement management not just in its corporate units but also in international subsidiaries (Kumar,et al,2013).
Samsung has since started to increase internal knowledge of enforcement and every year, the organisation offers training to its workers not just in Korea but also across the world.-to make them properly appreciate the company’s goal of compliance and law-abiding spirit. For example, Samsung undertook fundamental compliance training for all its employees in 2013 while at the same time recognising the company’s objective of compliance and law-abiding spirit. In addition, the organisation is also active in the preparation of workers in corruption prevention. So as to establish a transparent, ethical corporate culture, the company carries out training on corruption prevention that is usually tailored for various job positions, levels, and business fields once per every year. Such kind of trainings provide workers with virtual experience in tackling various situations and scenarios and assists in deepening their understanding of the necessity of ensuring corporate integrity together with equipping them to develop suitable countermeasures. Samsung also provides a broad range of collective audiovisual and online training problems. The organisation often publishes its intranet and affiliate guidance on its core portal pages for corruption reduction rules for all workers as well as executives, also visited by partner businesses (Song & Lee, 2014). Finally, the organisation also operates a network for talent recruitment. In 2013, for example, the business hired 97,937 new employees outside its Korean headquarters, mainly in its foreign manufacturing divisions in Asia, in order to satisfy the growing global demand for its mobile devices. The organisation also supports measures to ensure responsible hiring and the elimination of gender discrimination (Robbins, et al, 2014).
List of References
- Kumar, N., Benedict, J.,Steenkamp, E.(2013) Brand Breakout:How Emerging Market Brands Will Go Global. New York: Palgrave Macmillan.
- Mahlich, J,& Pascha, W.(2012) Korean Science and Technology in an International Perspective. New York: Springer.
- Robbins, & S., Bergman, R.,Coulter, M.(2014)Management. Sidney: Perason Australia.
- Song, J., & Lee, K. The Samsung Way:Transformational Management Strategies from the World Leader in Innovation and Design. Seoul: McGraw Hill Professional.
- http://www.samsung.com/us/aboutsamsung/investor_relations/corporate_governance/corporatesocialresponsibility/downloads/2014sustainabilityreport.pdf http://www.samsung.com/uk/galaxys6/#none
- http://www.samsung.com/global/business/semiconductor/aboutus/business/open-innovation/overview