Samsung: The Paradox of Samsung’s Rise Harvard Case Solution & Analysis

Samsung: The Paradox of Samsung’s Rise Case Solution


Samsung is considered as a valuable player of electronic equipment in the international market. The company began its operations in 1938; it became the leading business entity in South Korea. After these operations in 2010, the company earned a revenue of $227.3 billion with 315,000 employees globally. Moreover, Samsung is the producer of semiconductors, LCD panels, TVs, and cell phones. Due to this, it is also known in the market for its flagships, which help the company in achieving its strategic goals in the market as well as lead it to the highly competitive advantages. On the other hand, the company has also diversified its operation in multiple industries, which include information technology services, shipbuilding, financial services, chemicals, and machinery. Furthermore, Samsung has achieved great success in the domestic market and became the market leader in South Korea. However, the market position of Samsung products in the international market in not successful as they faced intense competition from Japanese electronics maker who set up their productions plants in South Asia, and growing home wages in South Korea's recently liberalizing nation.

In 1990, the CEO of the company, Lee found some opportunities in the unwillingness of Japanese companies. Lee also observed that if the company wants to become the analog market leader in the market, then it is necessary for the company to adopt the digital technology in its operations, which would help them in achieving steady business growth in the digital market. Moreover, he also expected that if the company established innovation, agility, and creativity in its operations, then it would help them in achieve success in the digital market as well as beat its competitors in the electronic market.

In order to surpass its competitors, Lee introduced an innovative management plan to bring excellent practices allied to reimbursement, policy development, and aptitude management into Samsung's existing business model. Moreover, the primary objective behind adopting these initiatives was that it  would help the company in improving its market position in the highly competitive market as well as assist it in improving its research & development process and design in the market. On the other hand, these initiatives would also help the company in strengthening its manufacturing activities, plant operations, and continuous improvement in the market, which would assist it in achieving its competitive edge over its competitors. However, in order to position its services in the electronic market, the company has developed the mix and match strategy that protects the long-term investment of the company from the short-term monetary pressures. As well as signifies, accepts, and executes the best possible practices in the organization which would help the company in achieving significant benefits in the organization as well as assist it in sustaining its competitive position in the highly competitive marketplace. This strategy also helps the company in bringing out a change in the cultural, organizational activities, as well as fetches foreigners in and transfers insiders overseas.

In order to fasten the operations of the company, Samsung has developed the hybrid management system, which would help them in achieving success in the electronic product market as well as assist them in improving their steady business growth in the market. Initially, the company builds hybrid management system for its Samsung electronics and then implements this system in other Samsung groups. The result of these implementations has been remarkable; due to this system, the company gained starting profit of $10.3 billion with $55.3 billion of revenue in 2004. Furthermore, the company became the second largest profitable manufacturing company in the world due to its hybrid management system. Moreover, it gradually increased profits when the economic crisis began, their profit was far higher than the five major Japanese companies which included, Sharp, Toshiba, Panasonic, Sony, and Hitachi...............

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