SAMSUNG ELECTRONICS: SUCCESS BY DESIGN

STRATEGIC MANAGEMENT

Summary

The Samsung group was founded by Byung-Chull Lee in 1938 In Korea.

In 1966thr group funded JOONG-ANG development an entrainment and service company

In 1987 Samsung was set up a advance institute of technology In 1969, Samsung electronics

manufacturing co. was incorporated. “second foundation”- to become

modern world class

corporation – 1988 The 1990’s saw a series of

technological innovation In 1984 SEMC was renamed

as Samsung electronic

SAMSUNG’S FOCUS ON DESIGN INNOVATION

Journey towards excellence started in 1993. Display looked unattractive compared to

competitors. Ignorant behavior of sales personnel Too much attention to volume & cost of

production Policy of focus on quantity

rather than quality Beginning of design era in

the country

DESIGN Philosophy

Incorporation of Korean values 8th century Buddha, - “Balance of Reason & Feeling” Reason is sharp-edged & very geometric Feeling is soft & organic Reason & feeling

approach had six

“guiding principles”

SAMSUNG’s DESIGN STRATEGY

Creating Global Brand Identity Samsung ‘word mark’ logo. Implementation of Global Brand Communication Strategy. New Design management Centre at Seoul in South Korea . Opened Usability Lab. World wide Design centres of Samsung.

Bringing cultural changes

Efforts were made to first create a design-friendly culture. But ACCD curriculum just did not suit the culture at

Samsung initially. E.g. south Korean encouraged to ask question to elders

according to curriculum. Realisation of to come out

of environment.

Systematic & process changes

Samsung redesigned its system and process to improve the design delivery process.

Designers began to enjoy as much, if not more ,authority as engineers and marketers.

Collaboration between different departments

became a key aspect of

new product development.

Samsung’s design successes

Popularity of bulkier projection TV’s was waning One of the best-selling brands in large high-end TV’s List of IDEA winners 20th position in Top

100 Global

brand survey

Convergence products

Providing great looking , hybrid products Vision was “To lead the digital convergence revolution” Samsung launched –

Camera phones DVD player Refrigerator

Criticism

Lack of coherent design. Some designs were poor. Unrealistic price. Poor user interface. Development goof-up.

Design for a competitive edge

Design a differentiating factor. Price premium. Customer loyalty.

Outlook

Sync master 971P New Partnership Elite CNB (Creating New Business) Group Net profit of $ 2.16 trillion