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Samsung Gadgets Company | Analysis

Samsung Gadgets Company began conducting business in 1969 as a low-cost producer of dark and white tvs. In 1970, Samsung acquired a semiconductor business which would be a milestone that initiated the future for SEC. Going into the semiconductor industry would also be the beginning of the shift phase for SEC. In 1980, SEC confirmed the market its capability to mass production. SEC became a significant supplier of item products (televisions, microwave ovens and VCRs) in massive volumes to well-known oe manufacturers (OEMs). For this reason, Samsung could easily move into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).

SEC was mainly targeted in production; therefore, it's no surprise that the executives themselves were also focused on their manufacturing plant life. Gains that SEC received were soon reinvested into Research & Development, production, and supply chain activities.

Unexpectedly, in 1997, a financial crisis struck the Asian market. Even though SEC's sales were $16 billion, they still got a negative online profit. SEC professionals exercised major restructuring initiatives that resulted in the dismissal of 29, 000 employees and the sale of billions in corporate and business assets. SEC could drive the Asian FINANCIAL MELTDOWN and could reduce its personal debt considerably to $4. 6 billion, from $15 billion, over the 5 time period. Furthermore, SEC could increase its net margins from -3% to 13% (Quelch & Harrington, 2008).

In 2002, SEC submitted net earnings of $5. 9 billion, on $44. 6 billion in sales, and consequently in 2003 became "the most greatly held stock among all rising market companies". Unlike others who thought we would outsource their manufacturing process, SEC remained committed to its primary competence, making (Quelch & Harrington, 2008). During 1998-2003, SEC invested $19 billion into chip factories and $17 billion into developing facilities for TFT-LCDs, which will be a major aspect for flat display Tv sets and computer displays. Even though SEC was centered in the creation process, it didn't make SEC a rigid company. To handle supply-chain demands, the business remained flexible because they build 12 manufacturing plants in China during 2003 and establishing R&D facilities in India (Quelch & Harrington, 2008).

With 17, 000 researchers, designers and designers, SEC was able to create an endless amount of digital products. Due to its fast decision-making process and give attention to an electronic future, SEC could move a new product from the attracting table to its commercialization period in only five a few months. This ability was almost 3 times faster than its competition (Quelch & Harrington, 2008).


Competitive edge is thought as the strategic benefit one business entity has over its rival entities within its competitive industry. Attaining competitive edge strengthens and positions a small business better within the business enterprise environment. Samsung has always looks for out the opportunities for the company stay prior to the competitors.

In today's fast-paced competitive environment, Samsung face the need to be more and more competitive and adaptive. Samsung strategic entrepreneurship as the means by which the company concurrently exploits their current competitive advantages while checking out for future opportunities. Obtaining a balance between exploration and exploitation includes more than only allocating resources evenly between the two operations. Exploration and exploitation are operationally, structurally, and culturally distinct processes.

In order for Samsung to stay gain their competitive edge; they have utilised their resources to maximize their result or end products. Resources such as human resources, money, machineries and materials are being strategized to stay ahead and be the leader the global market.

The first benefit Samsung has generated was by producing the recruiting. The company acknowledged the necessity for the employees to work in conducive working environment. Samsung created a family-friend working environment, which allows the team members take part in the developing and improving ideas. Samsung even sponsored their employees for MBAs and PHDs program to develop and improve their human resources skills. As a result of years of individuals capital investment, Samsung has a higher concentration of skilled technical engineers and labour. The business are able to management the recruiting and knowledge that will directly impacted Samsung's procedure by producing a higher productivity and quality of the product s and services.

The low cost strategy by Samsung allowed those to be very competitive in the global market. Samsung's potential to make a deal with supplier, offered them the benefit of cost raw material. Samsung received several awards annually since 1995 for their performance, quality and consistency of their products and services. Hence, this provided the advantage to allow them to make a deal with suppliers to provide them the natural material at the lowest cost possible or even at top quality. Samsung's high version cultural to new and quickly changing market demand made them an intense market audience.

As part of the competitive edge strategy, Samsung setup a centralized research and development (R&D) facilities. The majority of their competitors have their R&D facilities and productions facilities geographically dispersed around the world. The centralization gave those to opportunities to continuous explore and exploit higher products and invention for new technology, as well as innovation for existing technology. The Washington Post on 12 November 2012, in this article Apple vs. Samsung: challenge of the Creativity Strategies, was number 4 4 in the 10 most progressive companies after Apple, Google and 3M. However Samsung was at the number 6 spot in the most notable 10 R&D spender in comparison to Apple not at the top 20 list. For example, Samsung invested heavily on the new bendable display screen technology for smart phone. They prepared to kick off the new product in 2013, where other competitors are still expanding to commercialize the new technology

Most of the development for the Samsung products distributed the same primary design. Samsung adaptable product line able those to materialize those ideas to end products with reduced cost occurred. For each and every new invention and innovation, Samsung doesn't need to set up a new service. The results, higher produce against the expense of the production. Less expensive of productions allowed Samsung to provide attractive and competitive price for the buyer. The relatively less expensive gives tons of rooms for the costs strategy to use.

Centralization of the R&D facilities and the creation facilities, desire Samsung to maximize their resources and machinery. High adaptation to modify the span of development, able Samsung to create and extensive market their five major products division of Semiconductor, digital technology, telecommunication, LCD and digital kitchen appliances. The results, creation variety of product combine with lower cost to meet the customer demand. Offering the marketplace with variety or multi product portion, gave Samsung the advantage to other competitors. Example, by giving the varieties of models and product features, Samsung are able to tab to a larger market section compare to Apple or Nokia. Centralization of R&D also provided Samsung the benefit to keep their intellectual property within their boundary and mass produce at exactly the same time.

Samsung can be an aggressive market audience. They will be the early on adopters of new technology and technology, while their rivals still in R&D progress or even locating the market topic to commercialize the products. Samsung comes with an ambitious learning curve, which them an advantage and ability to learn the market demand better than other competitors. As the effect they are able to produce personalized products to meet the customer demand. Samsung secure and strong financial collection, gave them the advantage to establish and take up through aggressive marketing campaign and campaign. Positions themselves before any competitor does by discovering the customer's need and demand to improve their lifestyle. The information and data obtained, along with the close monitoring of the marketplace tendency, able Samsung to personalize to customer need. Samsung have a large product collection, which cover broad market and at all level.

Samsung has been in the market because the 60's and has been more developed. Acknowledging and creating the competitive benefit ensure their dominating in the industries. The fact that they are in the very best 5 in smart phone vendor and shipment for 3rd quarter 2012, with 31. 3% market share, proofed they are the major player on the market.

Continuous exploration and exploitation of market and technology through R&D, allow Samsung to be a solution supplier for individual kind on the everyday living. Samsung is a brand name that represents the qualities, solutions, lifestyles and standard in the establishments.


The management SWOT research covers four proportions namely; the talents, weakness, opportunities and hazards. By going through a SWOT examination, you become aware about the main dimensions which may have an impact on the functions of the business. Once a SWOT analysis has been jolted you can come with relevant strategies to be able to achieve the competitive environment.

A good SWOT analysis can help the business and opponents place themselves on the market properly. Therefore, here we go through the SWOT Evaluation of Samsung to give you an idea of how the company is operating in the world.

3. 1 Strengths

Samsung has a broad product range, that allows them to seize ample market talk about from various market segments. This enables Samsung to not only earn a higher return but it also allows these to diversify their risk and inability. According to numerous magazines, Samsung keeps a significant portion of the market share in practically all its products.

Samsung is a respected name and many people are familiar with it round the world. It also has won many prizes on its high quality products. It has the capacity and resources to utilize the latest technology and provide new and enjoyable features frequently. It includes won many accolades due to its potential to make progressive, sleek and sleek products. It has setup many production plants in low priced locations, thus they save well on cost of development significantly. In addition, it recently has fascinated sufficient positive press, thus its reputation is growing and has a good effect on the functions of the company.

3. 2 Weakness

Samsung never presents a new design on its own; it always waits and recognizes to its challengers. Thus, it skipped the first mover advantages. It generally does not ask for high price for its products, therefore often people relate the reduced price to begin a provider of low quality products. General perception supports that the higher the price, the higher the quality of products. Many Samsung products aren't user friendly, therefore consumer often hesitate to change to Samsung products even if the purchase price and quality is exceptional.

It does not focus on a specific niche; it provides its products to the mass market only. It generally does not create its own software so that it often depends on other options to complete the merchandise. Samsung faces tremendous competition from new companies and online companies. High setup and operation cost for such a firm.

3. 3 Opportunities

Samsung should make a dynamic effort to offer unique products to customers, in order to grab more market show. It might start creating software's for their hardware devices and reduce outsourcing. It could release sub brands to the company, with new and increased strategies. It could open more stores to serve more customers. It might try to launch creative products first, somewhat than after its competition.

Samsung should take part in product development and draw in more customers. It will also consider taking part in various incidents to draw in attention. It might offer additional services to maintain existing customers and attract new ones. Upsurge in the necessity for cell phones, Samsung could exploit this need well.

3. 4 Threats

Samsung has connected product lines, which means that if one product line fails due to its own reasons other products will also suffer from. Samsung development is very spread; it control buttons and runs different products while its competition use their resources and effort on one segment only. Diversification takes a lot of work and attention. They have set up production plants in low priced areas, which can be subject to sufficient political and financial instability. These instabilities can have an impact overall company it the problems gets unmanageable. It is facing threats from many other low cost companies.

Various companies have recognized the value of advertising, therefore Samsung will be at the mercy of far more competition as advertising creates and draws attention of consumers. Countries around the globe are experiencing a high cost credited to high inflation rates in most locations. Many administration legislations are now active from the innovative technology scheduled to health insurance and mental concerns.

The above section clearly reveals the SWOT Research of Samsung. By going right through the SWOT Examination of Samsung you can understand and further measure the company's performance to your own advantages. However, the above mentioned SWOT Examination of Samsung is limited to certain significant points only. Therefore, when assessing a company it is best to search online for additional SWOT Evaluation of Samsung so you have all the information you need to assess the business.


4. 1 The Eco - Friendly competitiveness

The company show high matter in develop Eco - friendly products to be able to lessen environmental impact. A wide range of activities were carrying out by Samsung to deliver an impressive eco - friendly products to customers. These activities were led by their concentrate on renewable management, products, workplaces and areas. Samsung green management insurance plan was try to boost development on greener environment through their business activities.

4. 1. 1 Eco - Products

In 2004, Samsung create a system that handles product's compliance with environmental standards. It was named as Eco Design Diagnosis System. This technique ensure Samsung product's adhere to environmental conditions such as learning resource efficiency and eco-friendly materials as what being explained in global environment regulation. ("About Samsung" 2012). The system than was being upgraded by introduces eco - ranking system to all developed products. This ranking system will rate the merchandise to three categories which are eco - product, good eco- product or prime eco - product. Recently, Samsung has placed an objective to ensure that 100% of the products go beyond good eco - product by 2013. ("About Samsung" 2012).

In addition, Samsung also believes that its product should have long lifecycles to be able to meet environmental care necessity. Therefore, Samsung implemented a technique that providing realistic product warranty. Lately, Samsung also come out with improvements that extending the lifecycle of certain product type. Samsung bring in its ground breaking technology called "smart evolution set". This technology enables customers to simply update television processor chip or software by plugging the business card size system at the back of television set. This technology encourage customer to changing rather than swapping.

4. 1. 2 Recycling Activity

The next strategy take by Samsung is respond of requirement of recycling regulations that significantly interested by federal government in Asia and America. Samsung gadgets have create a proper take back systems by collaborate with the federal government and related industry organizations to develop an efficient take back system by getting together with the responsibility. Samsung put into action these activities by implement several voluntary take back programs for its product that by the end of these lifecycle. Included in this are Samsung Recycle Direct which manages in USA, and India. This program enables people to fall off Samsung products at collection site or Samsung service centre. Samsung also offers get back service for mobile phone and portable products for consumer throughout the world

Samsung also launched in (Samsung Take back And Recycling) Legend in 2005 to ensure proper recycling process. Under this program, all returned computer printer cartridge will recycle to something useable. The part that cannot be recycled will be disposed and treated in a safe way. ("About Samsung, "2012)

4. 2 Common development with business partners

Supplier relationship is essential to any group. Suppliers can immediately impact the financial performance of a business as they will impact product development cost, processing schedules, inventory levels and timeliness of delivery goods or services. Samsung recognize that it's worthwhile to obtain investment concentrate on this relationship to become effective and effective.

4. 2. 1 Strengthened marriage with supplier

According to Olsen and Ellram (1997), the link between the feature between of the relationship such as trust and cooperation dependence on further research. In order to be a true global leader in industry, Samsung consider it business lovers relationship is an integral element. Samsung distributed it expansion with spectacular suppliers by expanded its support programs to be global companies. The support programs were involved with activities offering training, technological works with and cash. The communication between Samsung and its provider were being strengthened by listening to voice with their suppliers from a high management visit frequently.

Recently, Samsung also are in planning to put more writing growth activity using their key suppliers such as free use of branded solutions, support for patent subscription of new technology developed by supplier.

4. 2. 2 Commercial Social Responsibility

In line with its technique to support the neighborhood communities and its own commitment to Corporate and business Social Responsibility (CSR), Samsung have recently come out with the strategy to choose and assess their dealer by integrating CSR aspect in the criteria. CSR activities are growing swiftly in many international organizations. These CSR activities provide Samsung with important opportunities and competitive advantages.

Samsung take progressive strategy by conducting annual supplier analysis including CSR activities and success as part of its evaluation. This strategy is aim to give supplier incentives as their contribution in CSR activities structure by Samsung to satisfy common code of conduct by Electronic Industry Citizenship Coalition's (EICC). The CSR analysis criteria consist of 20 different areas including ban of child labor, occupational protection and health insurance and environment management

4. 3 Creative Culture

Samsung realize that high employee's involvement in the company growth is vital in order to let them feel sense of dignity, take great pride in and ownership of organization's vision. Samsung technique to build creative organizational culture in fortify the competencies of their employees are presenting great positive impact on Samsung competitiveness. Relating to Keyton (2012), organizational culture is not really a tangible thing, as an iceberg, it is less to be visual seen but imagined by pieces of artifacts, value, and assumption that were created, managed and subjected by organizational users and through their interactions. Samsung comply with this theory by actively promote creative organizational culture that allows their employees to pursue a healthy work life balance in an innovative and challenging work place. Samsung are also welcoming employees that with different history and facilities.

4. 3. 1 Diversity

Samsung is focused on create work environment that support the diversity of the global market the help. Every employee in this company irrespective of gender, contest, and or country of origin should be treating equally in provide a voice. Diversity management strategy takes by Samsung is classify into two basic directions. First, it targets variety for minorities which concern the problems on inequality. The strategy are undertakes in upgrade plan and systems to allow people who have diverse features to work creatively. Second, it focuses on diversity notion on all employees. The strategy is seeks to foster creative organizational culture that value diversity by changing the mentality and perception of most employees.

These diversity strategies are being demonstrated by offering various programs for feminine and disabled employees. Female employees are on offer to various programs that supports their determination to both work and home. It offers parental leave and internal child care and attention facilities. Samsung also have implement individual recruitment program for handicapped graduate and internship program for disable students. Samsung continually support diversity for minors by enhancing facilities for disabled employees to be able to make culture as an ideal workplace.

4. 3. 2 Talent structured recruiting of software and design expert

"Future creator problem" is a expertise based mostly recruiting process made to retain the services of new employees in software anatomist and design which two requirements creativity and skills are the key factors. The recruitment process were not conventionally ask for written exam but let applicant to evidence their skills by submitting software as evidence to their resume or qualification. Selected job seekers will go through interview sessions to test their technical capability and evaluation on their ideas and solution. ("Samsung Electronic Sustainability Report" 2012)


5. 1 Competitive analysis on Samsung

A competitive benefits is an gain gain over rival by offering clients greater principles either through extra benefit, value added criteria or price factors. Competitive gain is vital for a firm like Samsung to become lasting and successful over the long term. The sustainability of Samsung today is the effect from your time and effort has been taken to some key elements of their exceptional triumph.

5. 2 Enhancements as the fact of sustainable development.

Samsung's sustainable development is supported by innovation to several pushes that become key success for Samsung. The technology take by Samsung to overall business operation are responding to key issues encompassing quality and cost. Samsung firmly centers in these issues by undergo invention process to get lower creation costs, high profits and reach the marketplace swiftly. In this particular section we'll look on the factors that encourage invention in Samsung business procedure that at the eventually will lead to competitive benefit.

Samsung electronics have developed an efficient R&D system at head office and product divisions. The designers will work on long term project or multiple section projects at corporate R&D lab. The lab used by them is reinforced by Headquarter and Product department.

In addition, Samsung also develop their R&D centers in various locations. This assists R&D team to identify or notice future fads and chance for their technology capacities and key systems. This capabilities is manage effectively insurance agencies considerable training system to build up leadership talent. Complex mechanism and analysis system also are being used to adopt determined risk when exploring new markets. This step shows that Samsung are extremely careful when explore new product opportunity. The team also needs to develop contingency strategies to get ready different scenario that might being happen.

5. 2. 2 Creative talent

Samsung aware that advancement is the main source to being remain competitive in this industry. The only way to improve creativity performance is by employing managers that have right group of skills and always prefer to test and take the hazards. This kind of leaders are important in directs the organization in creative work culture. The courageous decision take by a innovator can encourage new frame of mind and way of thinking to the subordinates. The knowing of need for technology has made Samsung implement several activities to show their focus on it. In four years, Samsung have double up amounts of workers focusing on design, cover design were increased by 20 -30 percent on a yearly basis and more design centers were opened. ("Strategic Way, " 2005)

5. 3 International creation capabilities

Recently, Samsung are facing great competition to be able to sustain in industry. The rivals have retrieved Samsung competitiveness by buying offshore development. Increased abroad productions are appears to be the main element major component in their strategic response. With this section, we'll discuss how international production features perform by Samsung business lead this company to be competitive in industry by critiquing some major action considered by them.

5. 3. 1 Extension of just offshore production

Starting in 1970s, Samsung have started to look over international linkage to acquire product designs and marketing wall plug and concentrate on its mass production capabilities. In 1990s, Samsung have shown rapid enlargement of offshore production as their major strategy. The strategies accompanied by improvement of R&D functions to remain they remain competitive in speedily changing environment.

International production features are important for Samsung in order to enjoy cost competitiveness through the use of the low cost resources available in South East Asia. Youngsoo Kim (1998) said that Samsung implement this strategy by establishing Singapore established purchasing office in 1991 to increase the internationalization of production. This key intermediary is aggressively played its role in purchasing and distributes large sums of component and its affiliates.

Since 1990s, Samsung productions crops in Asia were in a number of countries which range from end products to components including China, Vietnam, Malaysia and India. The occurrence of Samsung's creation in Asia was ever more identifying its secure position on the market by having good connection between production functions and marketing targets.

5. 3. 2 Well trained employees in Asian affiliates

Samsung have to make certain their offshore creation sites are producing products that follow the standards decided by them. That is important in order to make Samsung have the ability to reap cost competitiveness by producing in low cost resource country. Samsung assure this problem by trained the employees in its Asian affiliates or mailing Korean trainers to the affiliate marketing.

In 1990, technicians from refrigerator flower in Indonesia were sent to South Korea for executing a training procedure for three months. 1 / 3 of Samsung Microwave flower in Malaysia was also being been trained in Korea. These activities have benefits Samsung when the proportion of component sourced from local regional suppliers experienced risen above 50 percent. (SMM, Sept 1993)


6. 1 Samsung Key drivers for future growth

The involvement of Samsung in digital and mobile market needs these to make it through within the companies for the next 20 years. In the other it means that Samsung have to create their key drivers that makes it possible for them archive as well as a benchmark for the future progress. This key driver also is based on Samsung successes and capabilities they have now and then to continue with adding some more new keys to guide them to understand their eye-sight and mission. The keys driver for Samsung future development is also known as their sustainability in present towards the near future. Focusing on Samsung Electronics, Samsung sustainability demonstrated that their performance in surviving the market sectors and can be as a standard to survive in the future. Regarding to Nidomulu and Prahalad (2009) company that make sustainability an objective will achieve competitive edge in the foreseeable future, that mean rethinking business models as well as solutions, products and operations. In 2010 2010, Samsung sustainability performance and plan focusing on ability management, integrity management, green management, public contribution, partners collaboration and products/services. For 2011 they placed 9 material issues as a instruction to sustainability in future expansion; (1) Creative Organizational Culture (2) Employee Health and Basic safety (3) Integrity Management (4) Increasing Friendly Contribution (5) Patent (6) Weather Change and Energy (7) Normal water Management (8) Shared Progress (9) Supplier CSR(Corporate and business Social Duties) based on Samsung Electronics Sustainability Article 2012.

6. 2 Samsung Electronic 2011 Sustainability Plan

For Ability Management plan in 2011, Samsung plan to, introduce telecommuting/ home based scheme for committed employees, increase percentage of female exec, set up idea proposal system at oversea research centers and employ the service of new recruits with disabilities. Samsung plan on Integrity Management was to boost compliance program also related activities, declare compliance management and putting your signature on of the conformity arrangement by employees. Instead of ability and integrity management Samsung also concentrate on Green Management plan which the plan to place 96% ratio of Eco-product development, arranged long/mid-term focuses on for normal water management, create a global environmental management system and support for external country companions' environment management system. In expanding Social Contribution Samsung intend to introduce new local social contribution based on global guidelines (Samsung Hope for Children) and create tools in assessing impact of public contribution programs. Samsung needs a supportive partner in order to help them attaining their eye-sight and sustain. Partner Collaboration arrange for 2011 is to hint agreement for mutual expansion as well as doing monitor on progress in mutual development and assess spouse companies CSR (Corporate and business Social Responsibilities). The last arrange for products and services are to extend outside the house country service centers and also have more subsidiaries company and obtain Korea as well as international honours for his or her products and services. The plan of sustainability was create in 2010 2010 and you will be apply in 2011. Samsung key motorists are based on their stakeholder, environment and their hazard. It now convert to 9 material issue to be more focusing on that one factor that can drive those to sustainability in future progress.

6. 3 Samsung Electronics Sustainability Accounts 2012

Samsung Electronics Sustainability Information 2012 is dependant on performance in 2011 and the plan that to be apply in 2012. Samsung ranking in 73rd in the most lasting corporation on earth. Samsung Consumer electronics' central business including of the manufacture and sales of digital press devices (mobile phone, digital Televisions, refrigerators, air conditioners, screens, printers and communication systems) and components (storage chips). Rather than Samsung head office in Korea they will have nine subsidiaries using region on earth which liable in managing creation and sales. Beside their successful in hardware developing, Samsung is will become the new head of the IT industry when they started strengthening theirs very soft vitality capacity. As their eye-sight to realize which includes achieving targeted sales of USD 400 billion, becoming one of the 10 most admired companies and one of the very best 5 global brands and in the earth. Samsung Electronics handles theirs businesses base to Samsung different kinds in technology, consumers and market in Device Solutions (DS) or Digital Media and Marketing communications (DMC) section, consolidating their indie operating framework. Digital Media Marketing communications is accumulated into Consumer Electronics (CE) and IT and Mobile Marketing communications (IM) divisions. The Consumer Electronics division manages home appliances office and visual display business department. The IT and Mobile division is took charge of controlling IT Solutions, cordless businesses, Network business, the Advertising Solution Centre and digital imaging shows. This strategy provides changes that have been made to the career in hiring of soft vitality experts that are more value than before in the 'Smart' time. They had announced their goal to do a technical shift by use a soft motivated company and made a 'Software centre' to increase their software capacity until it's on the right track with their world most desired making. Shifts in the Device Solutions (DS) section can also providing expansion of the organizations in charge of controller, software and solution development to be sure different teams. The extension of the program connected organizations was made to realize Samsung Electronics' vision of fabricating experience and new value by merging Samsung's strength in hardware design together with an emotionally appealing to interface and optimized software. Samsung Electronics also enhanced the business took charge of medical and bio device business then they extended the Bio Lab at Samsung Technology Research Centre in to the Bio Research Center. In addition they appointed bio material experts to consolidate their research in the region and improved support for bio medical and bio similar research.

Figure : Samsung Electronics Division Market Talk about (%) source Samsung Consumer electronics Sustainability Article 2012

They intend to become IT industry restructuring because of the appearance of cross-sector companies and resumed global monetary decline. Samsung Gadgets plans to make the largest investment ever before to tighten the competitiveness benefits of present businesses and create the building blocks of new businesses potential to operate a vehicle Samsung especially in Consumer electronics Industries growth in the foreseeable future. In 2011, they spent KRW (Korean Won) 13 trillion in facility extension for semiconductors company and KRW (Korean Won) 6. 4 trillion in screen panel make (10% higher investment than actually planned). In addition they building R5 (new research middle) which is currently under engineering in the Samsung Digital City (estimate conclusion 2013) the landmark of computer and R&D will calculate have more than 23 thousand experts. They also plan to incorporate more than 15 center part research centers including their storage, semiconductor and LSI research centers. The brand new center will give the foundation because of their research and development in existing product as well as for the next-generation screen technology and the new non-memory semiconductors.

For the near future Samsung Consumer electronics is on building a bio-business and medical. For medical industry they make investments KRW (Korean Won) 1. 2 trillion in anticipating sales of KRW (Korean Won) 10 trillion by 2020. . These were also nurturing a bio-similar (bio medication) and already developed an electronic x-ray that using visible information processing and digital systems in photo-taking. Quintiles (Samsung Electronic Subsidiaries) acquired founded Samsung Bioepis in 2012 and Samsung Biologics in Apr 2011. In 2016, Samsung Bioepis will start global sales of Bio-similar products and take care of international clinical screening. The bio-similar business capacity will comprising product licensing, manufacture development, clinical tests, and sales capacity. For software development strategy they raise the quantity of software engineer in order to meet their software development capacity. In order to realize their vision and future progress Samsung has; (1) started the program development to produce more appropriated and smarter software for Samsung devices and devices. (2) Initiated the Mass media Solution Middle in the Silicon Valley, America that has specialized in software to develop service development and capacity on content. (3) Functioning training programs and recruiting talented software technical engineers to increase their capacity. (4) created a fresh involved employees group 'S' to conduct core software experts in operating systems, smart Tv set software and mobile apps ( August 2011). (5) Created a special talent-based employing process for software ('S' labor force group) alternative of a far more standardized process that the same as to R&D personnel employing. Samsung created a fresh 'Software Academy' (for short-term training) that has the capacity to coach for more than five thousand employees in order to accomplish 50% of software training needs.

6. 4 The Live Smart Product and Samsung Stakeholders

People nowadays have a tendency to the term Smart Work, new office working style using the mobile device and Internet. It really is assist people to enlarge the opportunity of cooperation also to improved upon work efficiency. They produce notebook of 50% leaner with transition between program and faster start-up (request of file storage space between smart devices and PC). Eco-driver Printing device function which saves toner usage with the same quality. The function of Eco-simulator can also save electricity and newspaper. The smart printing application is enables direct printing from cellular devices (smartphones and tablet PCs). In Smart Life even you are not at home Samsung give your chance to regulate your air conditioning equipment, washing your material and even clean your home. All of Samsung product can save electricity and assist your internal job. Samsung Smart Robot More refined (based on vacuum technology) has cleaning efficiency of 93% with expanded battery life by 30% it has on-board camera (for smart view function) also with the function of training video convention. Samsung Smart Refrigerator assist visitors to manage food using the touch screen interface that connect to online store (Food Manager Application).

Figure : Samsung Electronic Household and Overseas Workforce 2009-2011 (Source Samsung Sustainability Report 2012)

Samsung actively reported their quarterly business results, Corporate Social Responsibilities CSR guidelines and achievements with the shareholders and investors. The Friendly Responsible Investment (SRI) companies always make a go to the Samsung Gadgets Headquarter in Seoul Korea to discuss CSR conditions that equal to the gadgets industry. They discuss about environmental management focuses on, misuse management and occupational safeness issues. In 2011 customer's queries increased drastically on Samsung Gadgets CSR.

Samsung created online open up communication system (LiVE) for employees of most ranks. The LiVE system allow all employees to post memos, give thoughts and opinions and communicate among themselves instantly for fast replies/ NGO (Non-Government Organizational) always collecting information, doing interviews with executive and make site appointments to Samsung Consumer electronics. Samsung Consumer electronics has been positively responses to past various issues brought up by NGO and always remain talk to them. Sharing progress among large companies and SMEs (Small Medium Organization) was the Government South Korean insurance plan concentration in 2011. Samsung Consumer electronics became a member of in a public-private dialogue by the Shared Expansion Committee, be a person in Korea Business Council for Sustainable Development, and actively communicated their viewpoints on energy-related and climate plans. Samsung Electronics has made variety communication channels to collect views of their suppliers. Their dealer grievance and grievance handling system allow them to convey their problems and discover solutions. These were also responding company opinions and collected through workshop and workout sessions.

6. 5 Samsung 9 Material Issues as Key Driver for Future Growth

The previous 3 years, Samsung target their sustainability six key performance area including talent management, integrity management, green management, sociable contribution, partner's cooperation and products/services s. However, they have decided to consist of global issues which may have the potential to affect their business activities as well as its overall competitiveness in order to gain relationship using their stakeholders. Nine key issues have been selected through the process; Creative Organizational Culture; Worker Health and Security ; Integrity Management ;Increasing Sociable Contribution; Patent ;Climate Change and Energy ;Normal water Management ;Mutual Expansion; Supplier CSR

6. 5. 1 Creative Organizational Structure

The first key drivers for future progress is the creative organizational composition it are the work & life balance through work smart; establishing a work culture that promotes learning and development; talent-based recruiting of software and design experts; and variety management (feminine employee disable staff, global variety) in building a work culture that motivates learning and development Samsung gadgets improving productivity by applying a flexible work schedule, effective time management as staff can arrive at work between 6. 00 am and 1. 00 pm.

Figure : Samsung Work Smart History

Through Creative Development Research Institute System, Samsung provide their employees with opportunities to attain creative new ideas which take professional incenses and all benefit of their talents towards that promotes taking risks. This system stimulates Samsung employees to build up creative idea. During the system they may be free from their key job and no penalty occurs if the staff not achieves the goals. The first product came from the institute is the attention can for disable user substitute for personal computer mouse. Samsung aggressively employing most proficient software engineer in order to archive their goal and eyesight. In diversity management Samsung selecting more female employee due to adaptable doing work for those whose have small child to take care. The versatile work allowed those to home based. Beside that Samsung also create internal child treatment facilities for his or her employees. Samsung show their concern on hiring the disable employee and for now they have got 1, 100 disable worker in the other palm Samsung help them to develop their carrier and give them chance to reside in better business world and culture.

Figure : Samsung sustainability article 2012

6. 5. 2 Worker Health and Safety

To help employees monitor their health, Samsung Electronics provides annual health checks. Their employees have opportunities to get advice with health experts like doctors and nurses. The key problem for employee is work stress that risk to personal health also business management. Samsung operating appointment centers, executing meditation programs and yoga lessons, and volunteer activities to help their personnel remain beneficial in a supportive working environment. Their effort is also in establishing Musculoskeletal Disorder Prevention Center, employing full-time sports science experts teams, submitting a protection guide on non-work related activities and creating Staff Health Research Centre. The Staff Health Research Center is concentrating on 4 regions of research including, evaluation of new production operations as well as materials and epidemiology, toxicology of dangerous materials, the task environment, with a perspective of becoming an industry leading occupational health insurance and environment research centre.

Figure : The role of Health Research Centre (Source Samsung Sustainability 2012)

6. 5. 3 Integrity Management

Samsung Electronic integrity management focus on established compliance team towards for realizing their vision in development global market. In 2011, they may have extended their Global Legal Affairs & Conformity Team from 2 hundred to 2 hundred seventy employee for more effective operation.

Figure : Samsung Integrity Management

The compliance program divides to 3 conformity awareness that is elimination, monitoring and follow-up. In elimination awareness it is include of staff education, compliance manual, compliance self-test system, procedure of your help workplace, sensing on laws and rules and record. The monitoring process concentrating on regular and non-regular monitoring by people of compliance organization units. The very last component is the post management/ follow-up that consist research of case of incompliance to recognize improvement methods and employee training for avoidance of recurrence. In order to establish on internal awareness conformity Samsung has to reinforce and developed working out program for existing and new staff.

6. 5. 4 Increasing Friendly Contribution

The economic turmoil nowadays result to the bigger space between rich and poor, as well as the increasing unemployment rate, taking high demand for more responsible capitalism. In the other viewpoint, the modern culture is demanding the business sector to take action and responsibility for problems appear instead of depending on government. Rely on that, Samsung Electronics believes that they need to take liable in staying and improving the sustainability of local communities in of their area. Samsung Gadgets has their own mechanize to increasing their fundamental contribution programs in volunteer activities and donations. One of their programs is Samsung EXPECT Children that has been conducted in 30 countries with different 9 areas. The program focused on promoting education and good health of young ones and children. As same also on Samsung subsidiaries in various countries managed various support programs including low-income junior health benefits, children education support and job trainings, suitable for needs of the children and young ones of local communities.

Figure : Samsung Social Contribution

The other public contribution that has been conducted by Samsung Consumer electronics in South Africa are employees volunteer program (employee sent to Sudan, Zambia), engineering academy, solar energy lantern and solar internet college.

6. 5. 5 Patent

The patenting issues on technology now is major problem from avoiding imitate of Samsung Consumer electronics product. They have got failed in defending their designed against Apple and also have been sued altogether USD 1 billion. Furthermore, as your competition in IT technology is ever before emphasizing, as the intention of various IT technologies is in tendency, the patent resists are bound to become hostile. Besides that, the immediate technology creativity cycles that has increased patent competition. Samsung Gadgets increased the strength of their workforce significantly and reorganized the patent related company for purpose to protect their know-how in technology. To maintain in technology competition in 2010 2010 the swift decision making leading to establishes the Intellectual Property Centre (IP Centre), that associated with the Samsung Advanced Institute of Technology ( including hiring outside expert

Figure : Samsung Patent Applications

Samsung strategy on obtaining structure issues is by partnerships. Samsung Electronics turned out the huge durability of their patent protection collection by signing cross patent contracts which allow a broader combination use of patents with other global IT companies. They collaborate with Qualcomm (cell phones), Rambus (complete semiconductor products), Clear (LCD panel component) and in Kodak (camera technology), and this year 2010, also followed by deals with Microsoft (MS) and IBM for the combination license of technology of the cellular phone operation system. The exact same strategy also applied by Samsung in using pattern license of ANDROID OS operating systems. In the partnership in addition they gain new ground breaking in production future technology.

6. 5. 6 Weather Change and Energy

Concerning of Local climate change has become one of the most crucial global issues. Environment change has already been leading to many people in daily lives with unforeseen weather conditions, flooding and draughts, the function of greenhouse gas (GHG) management has turned into a key concern for the global community due to lessen the effect on environment change. Samsung Electronic has building Environment Change Mitigation System EM 201 in 2009 2009 In addition they founded a greenhouse gas emission management system that can screens direct and indirect emissions connected with all business activities including global companions, logistics, developing, product use and worker's work related trips. Samsung are carefully monitoring each source of Greenhouse Gas emissions and getting reductions to satisfy their commercial responsibility (CSR) in minimizing weather change.

Figure : Samsung Local climate Change

Product energy efficiency improvement makes reduction average energy ingestion of products by 40% and achieving 0. 5 W of standby electric power by 2013. Supplier support is made for the establishment of global supplier's GHG inventory system by offering training and know-how sharing to global suppliers. Execution if energy management system and establishment of internal energy efficiency recognition system put through all business sites in Korea. Incorporation of GHG lowering facilities is the lowering F-gas emission from the semiconductor and LCD creation. Samsung Consumer electronics low carbon product recognition victor is on LED Tv set, Note PC and semiconductor.

Figure : Low Carbon Product Qualifications Winners (Source Samsung Gadgets Sustainability Statement 2102)

6. 5. 7 Drinking water Management

The other major factor and issue in this key drivers in future growth is how Samsung can control the water resources (Normal water Management). Samsung semiconductor manufacture is dependable on daily usage 0f 7500- 15000 a great deal of clear water. As a respected semiconductor company, Samsung is currently on high dependable in normal water management in order to maintain water resources.

Samsung Electronics Water Management Resource coverage recognizes the importance of drinking water resources in the sustainability of business and culture management, and to its coverage as a accountable corporate resident of worldwide community. Matching to Samsung Electronic Sustainability Article 2012, there are several of code conducts; (1) Strive to minimize water risk impact by our business activities. Analyze the impacts of your products, creation activities and services make on water resources and lessen risks by identifying and implementing new technologies; (2) instill an awareness of the value of normal water resources as part of our corporate and business culture. Integrate the value of water reference coverage and sustainability management into the corporate culture and ensure accountable water learning resource management by employees with the highest awareness for the effect on local areas and the surroundings. (3) Proactively cooperate with open public water plans. Proactively donate to the establishment and execution of water learning resource management procedures by international institutes; the federal government and local authorities in line with relevant recommendations; (4) disclose our plans and activities on drinking water source management. Disclose company regulations and activities related to drinking water learning resource use to stakeholders including local neighborhoods in a transparent manner.

6. 5. 8 Mutual Growth

Samsung Electronics widening their support programs for exceptional 1st tier suppliers to become worldwide companies, and we start providing different support policies for 2nd - and 3rd -tier companies to achieve shared development. They developed key programs to support supplier shared growth including technological works with, training, also provision of support money. They then strengthened communication and more carefully paid attention to their suppliers through an effort including a visit by top management to their suppliers. Samsung released shared growth implementation regulations; financial support programs for 1st and 2nd tier suppliers, support for 2nd tier supplier competitiveness building, increased trade opportunities, technology development contest, cultivation of global SMEs (Small Medium Enterprise) and incentives for 1st tier suppliers with good shared growth practice. Corresponding to Samsung Sustainability Survey 2012 in addition they plan take different kind of distributed growth promotion actions including co-development of center parts for boosting the competitiveness of suppliers, inclusion of shared growth performance signals in performance assessments in our employees responsible for supplier collaboration and responsive modification of raw material price changes in source contracts, free use of copyrighted technology, support for patent registration of new technology developed by suppliers.

Figure : Samsung Shared Development Management Execution Plan and expected Benefits

Shared progress management implementation plan concentrate on; establish a dealer support fund; elevated experienced 2nd and 3rd tier suppliers into 1st tier company; cultivate global SMEs; put into practice fast-track ' Short lived Supplier Registration Policy' for SMEs with Impressive ideas or new technology. For the share expansion on expected advantages to suppliers is concentrating on; money for investment in facilities and R&D; access to greater supplier benefits, improved credibility in market; strengthened reputation as formal companions of Samsung electronics; increased business opportunities for companies without preceding business relationship; increased sales of supplier products with funding and tech support team; more translucent and reactive communication between suppliers and Samsung

6. 5. 9 Supplier CSR (Corporate Social Tasks)

Samsung Gadgets is enduring by the EICC (Electronic Industry Citizenship Coalition's) basic code of carry out as a guide for satisfying their CSR (corporate and business social responsibility). They may have provided the development of a CSR management composition by distributor companies and contained CSR activities as part of their supplier analysis criteria to help expand incentivize their contribution in CSR activities. Samsung also applied a 3rd party validation program of supplier CSR activities. Developing Corporate Social Tasks activities is an integral part of supplier evaluation of Samsung Gadgets. They are managing annual distributor evaluations using conditions consisting scientific competitiveness and other inside criteria to identify leading suppliers. In additional, the business has provided financial support and collaborative technology development opportunities. In 2011, Corporate Social Responsibilities successes and activities have been an integral part of the evaluation criteria previously; they increased their importance in the entire evaluation. The CSR activity evaluation requirements including 20 different areas covering the EICC (Electronic Industry Citizenship Coalition's) basic code of do, consisting a ban on environmental management, child labor and occupational health insurance and safety.

Figure : Samsung Distributor CSR


Technology planning is a central element in a corporate and business business planning. It is needed both at the corporate level and the tactical business device (SBU) level (Metal, 1989). Large company such as Samsung and Apple view technology panning is interrelated with the ability to offer their customers a little extra values on the move forward technology.

According to (Khalil, 2000), the procedure used in planning is alone at least as important as the program developed. The process includes:

Examining all points of view in the business.

Setting clear, practical objectives.

Charting a course or paths toward obtaining those objectives.

Obtaining determination for execution.

Executing and following up on the plan.

In my opinion, it does is practical that Samsung has the ability to use the resources to utilize the latest technology and provide new and exciting features frequently. In addition, Samsung gets the strength with the design with attractive styling that interest the customers as the result of development of Samsung new products that require team of product custom made. Referring to the concept from the CEO of Samsung Consumer electronics in their Annual Survey for financial year 2011, they have got the cutting-edge hardware to be able to strengthened software capabilities. Based on the report, they may have achieved unparalleled global competitiveness in hardware, and in season 2012 they centered on improving their software capabilities in interface, individual experience, and design and brand recognition.

Further, Samsung can draft its this advised technology plan, matching to Porter et al. (1991), a technology planning platform based on the task of Madox, Anthony, & Wheatley (1987). This platform, shown in Exhibit 1 below uses the general procedure for strategic planning employed by many corporations. It includes forecasting the technology and the marketplace to examine opportunities and needs alongside the organization's durability and weaknesses, producing and implementing an idea of action to achieve the organization's goal and match the mission.




Forecast the technology: This is the starting point of technology planning. Job both internally had technology and that available available on the market over the look period.


Analyze and forecast the environment: Identify key factors in the organization's environment, potential claims of the surroundings, key uncertainties, major risks (especially competition) and opportunities.


Analyze and forecast the market: The introduction of a requirement analysis that identifies the existing needs of major customers establishes the likelihood these needs will change and specifies explicit needs that these needs make on the organization's product or services. The tools of market research and impact evaluation will complement each other. However, analytical tools, no matter their sophistication, won't be adequate. It really is imperative that this step includes immediate contact with prospects.


Analyze the business: Delineate the major resources and problem; develop a catalog of available human and material resources; and examine recent performance against explained targets. Understanding the durability and weaknesses of your company is crucial and can't be over emphasized. This can be excellent time to involve external consultants to stay away from the errors that happen when users of an organization examine themselves.


Develop the objective: Specify critical assumptions; create overall organizational aims and specific target objective for the look period; and specify criteria where to measure the attainment of these objectives. This task will supplies the central target of the organization and really should include as much participants as you can. Organizations have a much better chance for success when each member knows and feels a feeling of possession in the objective.


Design organizational actions: Create candidate activities; analyze and issue them; develop a consensus strategy limited to a few key activities, possibly attendant on several key contingencies. This is another excellent time to apply the various tools of impact diagnosis.


Put the program into procedure: Develop timely sub-objectives, if appropriate; designate action steps, routine, and budget; develop monitoring mechanism; and identify control mechanism in case performance falls below established specifications. In this step, monitoring can be quite useful. Technological marketplaces are strong, and each firm must maintain a knowledge basic of changes and customer reactions to them.

Source: A. Porter et al. , Forecasting and Management of Technology. 1991, John Wiley and Sons Inc. extracted in Khalil (2000).

The first rung on the ladder in technology planning is forecast the technology. In Samsung, they need to predict the future as a matter of crucial concern as the rapid changing technology factor in their organization. They have to face with the technology discontinuities that's resulted from the launch of the new product with a fresh technology features. For illustrations, in their mobile business, reports has been spread out to the marketplace on Samsung Bendable display technologies on the upcoming Smartphones to the market in the mid of next time. The introduction stage of bendable display screen technology may resulted to the discontinuties of the toned hard display of any telephones on the market right now. Further, Samsung must forecast on the marketplace notion from now, in order to justify the true market base because of their new bendable display screen technology. Could it be can totally a ground-breaking era of display technology whereby everyone on the planet will be change their devices to the bended screen? If yes, it is an answer that the prevailing hard screen technology by Samsung will be completely discontinued by stages.

The second part of technology planning is analyze and forecast the surroundings. Firstly, Samsung must identify their organization's environment involve that will establishes the opportunities and risks on the organization. Organization's environment involve the task conditions; customers, suppliers, marketers, and the overall environments; socio-cultural forces, political-legal makes, global forces, financial forces and scientific causes. By this factors, Samsung can examine the potential says of every factors that can bring uncertainties to Samsung. For instance, how the new technology that introduced by the brand new IPhone 5 from Apple can bring some potential dangers to Samsung's product. Even as we also know that Apple is the nearest rival to Samsung and had legally claimed that Samsung product was replicating their design. Predicated on the article by (Alexander, 2012), a jury in California decided that Apple should be honored compensation for competitors Samsung duplicating their designs. Judge Lucy Koh ruled that Samsung should pay Apple $1 billion following the jury found Samsung infringed six of seven patents for its mobile devices. The verdict can lead to analysis on US sales of hand-held consumer electronics that are considered to violate Apple's protection under the law - although Samsung has said it will appeal resistant to the ruling. Samsung Attorney, John Quinn commented that such decision shouldn't be permitted to stand since it would discourage technology and limit the protection under the law of consumers to make choices for themselves. For me, Samsung has the rights to innovate its own product in term of technology forecasting in order to cope with the fast changes in the technology and the complex needs and demands from the marketplace.

We move further to the 3rd step of technology planning; analyze and forecast the market. This is the steps whereby Samsung can create some details evaluation of the needs of these existing and prospective customers towards technology that being used on another product. Relating to (Alexander, 2012), the Smartphone industry price over $200 billion yearly. Every day, greater than a quarter of all Samsung employees (40000 people) take part in research and development to find the next generation of powerhouse products that will need everyday routine beyond the normal and beyond creativeness (Samsung, 1995). In Samsung, they look at technology is crucial to their business to be able to fulfill the key needs and needs of the consumers. In my o

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