Samsung Electronics Company, created in 1969, was first considered as a low-cost third-tier commodity brand with a little product differentiation. By exploring marketing strategies, market research and analysis, Samsung has easily change into a major player in the electronic products and home appliances market. The company has climbed up the rank in the past decade and was in 2003 at the 25th position of the world’s most valuable brand. The goal is now to reach the top 10 by 2005.
For that, the brand needs to achieve high level of awareness and to become a truly referred brand. We will see thought this document what are the ingredients of SEC’s corporate turnaround strategy, which are the individual actions taken by Samsung to build a strong brand and finally determined if Samsung can pass Sony and become a top ten global brand. There were two major ingredients to Samsung corporate turnaround strategy. The first one Is when the chairman, Sunk He Lee, launched the “new management initiative”, which set out to remake Samsung as a global business leader.
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Throughout the sass, Lee demanded the rethinking of key fundamentals and set the stage for long-term commitment to Investment In Innovative, premium products and brand value. For that, Samsung viewed vertical integration and investment in manufacturing facilities and research and development as a source of flexibility and control over the entire product process. Samsung Invested In many different factories and was also flexible In Its choice of plant locations to keep cost low.
On the other hand, Samsung offer the possibility to customized some products ND as a result Samsung average prices were 17% above Industry level. The second ingredient was when Samsung transitioned from analogue to a digital technology manufacturer. Its 17 000 scientists, engineers and designers were engaged and thanks to the speedier decision-making processes Samsung could refresh Its product line twice as often. The Investment In digital technologies through attracting and retaining top selectable talent paved the way for Samsung focus on premium high quality products.