Based on case study,

Provide THREE Strengths and THREE weaknesses, and explain it (100 marks)

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CASE 25 SAMSUNG ELECTRONICS 2017' On February 17. 2017. herebefore trees. This drive crops tometals feel pressured to prove ther arrested on bribery charges. This drew con- firm until 2010.' Lee Jaeyong had bee midable in South Korea with Samsung Electronics he accounting for 20 percent of the country's exports. s. ing to launch the Samsung Note 7, father, Lee Kun-hee, became incapacitated after suffering a Driven by the need to prove that it was mo heart attack in 2014. The son was charged with paying $36 follower of Apple. Samsung pushed the No lion to a secret confidante of the South Korean presi- of of the firm's most ambitions and nal moves that would allow smartphone was packed with new fe moves that would allow Lee Jae-yong to inherit control The charges came at - tou The charges came at a tough time for the firm, which s in order to keep the phone relatively to its top-down rigid management approach that pushes its see Exhibits I and 2). "In the Samsung culture. managers an The highly publicized debacle of the No prepared by Jamal Shamsic, Michigan State University, with the me observers that Samsung has pro stance of Professor Alan B. Eisner, Pace University. Material has been from its basic culture. Critics claim that the right @ 2017 Jamal Shamsic and Alan B. Elance, to work incredibly hard to the point of over EXHIBIT 1 Income Statement (billions of KRW) Years Ending December 31 2016 2015 2014 2013 201,866 200,653 206,206 228.693 Gross Profit 79.983 74,920 71,927 90.996 etax Income 30,694 24,859 27,532 Net Income 22,4 15 18.694 23,082 39,821 EXHIBIT 2 Balance Sheet billions of KRW) Years Ending Decen 2016 Total Assets 262.174 242,179 230,422 214,075 Total Liabilities 69,211 63.119 62,334 64.059 Total Shareholders Equity 186,424 172,876 162, 181 144,442 Source: Samsung C184 CASE 25 ;: SAMSUNG ELECTRONICS 2017 EXHIBIT 3 Smartphone Sales Worldwide 2016 Market Shares 18.1% to larger an 18.3% 10.6% OPPO 7.3% 5.8% 40 0% EXHIBIT 4 Global Market Ranking, 2016 Product Category Market Rank Mobile Phones Memory Chips Digital Televisions DVD Players Washers & Dryers Digital Cameras to market. Further, analysts suggest that a related problem hardware. while other providers, ranging from Apple to ation, Yun and products henry because they can onlydoes this set their Samsung has introduced its own operating system, Tizer to lay off about 30.000 employees, re hich is unlikely to challenge existing systems though, such of Samsung's factories for two months so cecutives at Samsung claim the firm's strength lies in s cance for the firm's future. Developing a Premium Brand profit margins on some of these pro Samsung away from its strategy of com rely on the lower price of its products. He began to push Discarding a Failing Strategy the firm to develop lee finlay developed rather than to Yun Jong Yong was appointed to the position of president Yun placed considerable emphasis on thewith their attree still making most of its profits from lower-priced appliances tive designs and their advanced technology. By focusing on CASE 25 :: SAMSUNG ELECTRONICS 2 l this, Yun had ducts designed to make a with a variety of features such as ca tors. The firm called them "we on and the Walkman had helped to plant firm's inc if the firm and its night in t may hold plexity in the de in order to create a con chains like Walmart we more up ely with retail- EXHIBIT 5 Designers Employed 2016 2014 guring out what to offer in their smartph 2012 Speeding Up New Product Development 2010 iso took many steps to speed up Samsung's new prod 2008 oducing new products to the market 2006 8 8 8 8 8 2004 tors say they have to go through far fe than they had to in the past to win appre 2002 budgets, and marketing plans, speeding 2000 ortunities. 1998 emerging shift to digital was ologies. He made heavy investments into key technologies Source Samsung C186 CASE 25 = SAMSUNG ELECTRONICS 2017 Rementin's speed and agility. Charles Colvin of Forrester said : "Samsung strives to consistently lead the consum ent industrial designs of its Galaxy S smartphone for four dif. Electronics industry in product design and engineering multaneously. "They've had a long history of respond- ing to market trends with a lot of alacrity," he remarks pond of its products to make them the center piece of a digital home. In a showroom in the lobby of its headquarters Perfecting a Design Process Seoul, the firm shows off many of its latest offerings ran As Yun was building up the Samsung brand, he was already fiber corporate dataa timeras Wishers c bible" design of its wide range of products from home visions or shuffle their feet on an interactive LED liances to handheld computers to flat-so products from home would all be eventually linked to each other. In fact, about Samsung's efforts: "With its resources and exp firm does seem to be well placed to develop attract. connected devices . The question is , have to combine computers, consumer electronics and edge trendsetter like Apple?"min . Can they be a cutting- said Dac Je Chin, the head of Samsung's digi- Creating a Sustainable Model? amsung Electronics has been managed since 2012 by msung tries to pack its products Kwon Of-hyun, who helped the firm to base chirp teaching with backgrounds in disciption proves more incrementally. ba g in 24 research centers semiconductors. As aT Tokyo, Mumb nponents, for firms nd Hewlett-Packard. "Then Samsun analyst. "The benefits of tha he company's newest products as these Experience Shops had expande Buy locations across the U.S. Samsung has acknowledged that Lee's arrest usiness nature of the problem will allo alvador Dali art uppermost in the mind of the buying public. I have gotten past the recent problem with the battery of its Aware that it more from its bait strategy, the firm has made several acquisition devices and Viv. a digital ass tant that can compete with Apple's Siri. Its most aggres vehicles via investments in Vinli and nutonomy, two s up with an $8 billion acquisition of U.S. based Harm and Asia. After winning awards into similar services for automobiles CASE 25 :: SAMSUNG ELECTRONICS 2017 C187