Threshold Capability Resources:
Financial Strength: Samsung Electronics is able to absorb less than expected financial figures as a result of the mother company’s semiconductor business which generates massive revenue and profit (AFP, 2015). Physical Capital: The organisation has various facilities firmly established globally including Budapest, Texas, Suwon Gyonggi-do, Noida, Jiangsu, Moscow, Tokyo, Barcelona, Cleveland, Amsterdam and Tijuana (DataMonitor 2009). Technological: The organisation currently holds over 100,000 patents (Samsung, 2015). Intangible:
Human Resources (knowledge):
Samsung focuses on high skill recruitment particularly in areas such as engineering, I.T and management (Canada to Korea, 2015). a. Investing more in research capability,
b. Because high technology companies need people who can innovate product in order to compete in the market c. Improving training either for local employees or global employees Capacity to innovate: In the past, Samsung primarily innovated products based on what competitors were producing. Samsung now has the capacity to innovate upon its own products alongside producing these products. It is the first Korean company recognised globally for innovation. International firms that initially refused technology transfers now face a fight to maintain their own technological capabilities (Ali, Park and Chevalier, 2010). Reputation: Samsung Electronics is ranked third in a list of the most reputable companies in the U.S. and the only non U.S Company present in the top ten. There were over 27,000 respondents and a diverse range of characteristics to rate the company on. This increases an upward trend in recent years. Of particular note was its reputation in Vision & Leadership, Emotional Appeal, Products & Services and Financial Performance (Yeon-jin, 2015). Perception of product quality: After Sales issues are rare at Samsung. The company may often study items that are returned in order to learn from the issue or defect. “An example can be given for Switzerland. In 2011, Samsung signed an agreement with a Switzerland supply chain company CEVAx. Under the contract, CEVA will organize pickup of return devices, such as phones, flat screens, printers and refrigerators from Samsung’s service partners across Switzerland and bring them to a central laboratory. CEVA employees will carry out quality control activities on behalf of Samsung to establish if the items have an inherent defect or can be repaired. This kind of operation can be found in every market” (Canada to Korea, 2015). Capabilities for competitive advantage/Unique Resources:
Product Range: Samsung has a very large product range in smartphones that are customisable (Shaughnessy, 2013) In house manufacturing: “Each division is responsible for its own factories and assembly plants. No outsourcing of assembly takes place as far as is known. In 2011, the major locations of assembly for mobile phones were Korea, China and Vietnam. Samsung handles its logistics in Asia for components through three key centres, Tianjin, Shanghai and Hong Kong” (Canada to Korea, 2015). R&D and Production Facilities in the same location: Based on Synergy and conflux of production, development and research. (Nam, 2009) Patents: Very financially aggressive patent acquisition strategy (Albanesius, 2015) and massive portfolio (Somaya, 2015).
Brand: Samsung is investing aggressively in their relationship with the consumer and this is reflected heavily in their brand. On Interbrand’s website, Samsung’s global brand value is in 7th place as of 2014, a rise of 15% in one year (Bestglobalbrands.com, 2015). Next to Apple users, Samsung users are the next in terms of brand loyalty with 58% of Samsung consumers who upgraded in 2013 choosing a new Samsung device (Danova, 2014). This again demonstrates the increasing strength of the global brand. This data was gathered in the U.S, UK and Australian markets....
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