Samsung Electronics - Case Study Example

Samsung Samsung Electronics Q Samsung experienced changes both externally and internally. While market leaders like Sony, Nokia and Motorola were offering new consumer products, Samsung had a limited range of cheap products. Samsung pro-actively transformed itself into a premium brand company offering a wide variety of high-end products, even while effecting significant changes internally. Thus the change is based on competition through product differentiation and enhanced organizational efficiency. Q. 2: The person advocating changes must be able to convince his team on the need for change, and show results quickly.

Yun streamlined the organization by making it lean and reducing inventories. He realized the importance of being the first to introduce feature-loaded technology products into the market, and to diversify his production base to cheaper locations. In short, Yun played the role of a ‘change agent par excellence’ by his vision to switch to high-end products, bringing them faster into the market, even as he revamped Samsung internally.Q. 3: Close observation of consumer preferences and creating a competitive environment between in-house teams and external suppliers are two of the significant methods used for product innovation.

Yun discarded the seniority based promotion system to one based on merit and thus encouraged internal competition. By bringing together the top design teams in the VIP Centre, Samsung found faster solutions to newer ideas.Q. 4: Change is necessary to survive and grow as Samsung’s experience shows. Change itself is a continuous necessity as Samsung can not rest on its oars. Learning continues.