Design Strategy at Samsung Electronics: Becoming a Top-Tier Company Harvard Case Solution & Analysis

Company Background

In the year 2005, South Korea turned into one of the most successful and technologically advanced countries in the world. The country based on its immense technological features, ranked first in terms of broadband access, with almost 80% of the households were provided with high speed internet services.

The next in line was Netherlands which had almost 60% houses with broadband internet accessibility. In this era, United States had only 45% houses with such technology. Moreover, the penetration of mobile phones was also considerably high and the major players actually operated from this part of the world.

In the year 2000, Samsung designs actually started to begin developing new and innovative designs rapidly. In the year 2004, the chairman of the company Lee won the award for the Design and Leadership in the Honk Kong Design Center where he was praised and recognized for his strong commitment and dedication towards the design and innovation in business.

The success of the chairman was a clear indication that the combination of corporate leadership and design can actually merge to make a rather constructive difference to a growing enterprise in a highly competitive and demanding market.

Moreover, in the year 2005, Samsung even reorganized into five businesses: Digital Media, Digital Appliances, Telecommunication Networks, LCDs and the Semiconductors. This was the time when most the products under the give categories enjoyed market dominance and high revenues. This was the time when the company Samsung actually becomes an innovative and design oriented organization in the year 2006.

The financial performance of the company Samsung looks reasonably well placed and in fact towards the upward direction. Samsung in the year 2000 was placed with consolidated sales of $34.6 billion which by the end of year 2005 have gone up to $79/5 billion. This actually confirms the upward growth of the company. Along with this, the domestic sales which again indicates and confirm the firm’s performance states that the domestic sales for SEC haverisenup to $10.2 billion. The products manufactured by the company are not only preferred and developed for the international market, but they are equally liked by the local domestic customers also.

Moreover, the most obvious increase has been in the percentage of exports that has been made by company, in the year 2000, the total exports were $18.6 billion which have doubled in fact more than double the growth has taken place and the exports for the company have reached to $46.5 billion.

This is also an indication of the success SEC has achieved in a short span of five years. It is important to note that the major success of the company has come with the R&D. therefore; the budget for this department has been increased five times since the year 2000. In 2005, the amount has reached to $5.34 billion. Finally it can be said that the SEC has been quite successful in terms of financial health, the total income for the company has doubled in five years where it has reached to $7.5 billion in the year 2005.

SEC in the year 2005 decided to entirely focus on the hardware business of electronic consumer industry. The company decided to focus on the vertically integrated hardware company that actually decided to avoid participating in the software business. The reason was simple, SEC wanted to become a hardware company produce, manufacture all the business products in house, for this purpose it decided to focus on hardware only.

            The decision to present itself as a hardware company has actually been one of the most successful decisions, ever since it has focused on hardware, the company been investing on the R&D which has made the hardware unit of Samsung a strong one and in fact, it has been able to divert the attention of consumers towards the brand.

Design Strategy at Samsung Electronics Becoming a Top-Tier Company Case Solution

            Digital convergence has been the watchword and Samsung has been actually inspired to become the first companyadvertising under one single advertising agency which rather helped them to execute the holistic marketing campaigns with a more consistent feel and look across the traditional media, POP, outdoor advertisement and the exhibitions.

The chairman of Samsung Lee considered design structure of Samsung because he actually understood the importance of a design based reach by actually considering what it actually meant if it was unnecessary. He actually considered the strategic importance of design, along with the importance of technological development.......................

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