Samsung Essay Example | Topics and Well Written Essays - 1000 words - 1

Samsung - Essay Example The company which always prided in its expertise to customize the product according to the needs of the customer has indeed come a long way from its formative years. The importance it gives to the quality is reflected in the fact that the flawed memory chips worth tens of millions of dollars are burnt in the open field to remind the employees of the belief customers place in their company. It has won several awards for quality during the periods 1995 - 2003 from fiercely competing companies too, which is a hallmark of sorts. The strategies it employed in bringing out the best of its engineers were a novelty then and the same strategies are now implemented across the globe to repeat the same success story Samsung had written. The company is the leading supplier of memory cards to PCs, digital cameras, game players and other electronic devices. Its primary focus was on the memory chips category which has had its own fluctuations over a period of 2 decades. There were established player s in the market like Infineon Technologies, Elpida, Micron Technology, Hynix, etc. Most of these companies were as a result of alliances with Global giants like Intel, Siemens, Toshiba and Hyundai. Samsung too acquired technology from Micron on 'cash for technology' basis. It then implemented a unique internal competition for advancements of its acquired technology. ... It graduated to the frontline companies in this category and soon toppled Hitachi as the number one producer of memory chips. The presence of Samsung's main R&D facility in one location, south of Seoul, helped save a substantial amount in construction costs. The development of Samsung's memory chips division closely follows the Porter Diamond model in that the location, available raw materials and labor are crucial factors for comparative advantage. The high employee morale that has been its strength right from its birth has ensured its position stay perched at the top firmly for decades. Samsung was also responsible for 22% of all of South Korea's exports in 2004 and was a major contributor in the $22.1 billion worth semiconductor exports from South Korea. It also represented 23% of the total market value on the Korean Stock Exchange. With this kind of economic impact on the nation, it is important from both the Government's and the company's view, that it sustains the growth level. The net revenue over a period of two decades is as follows. It shows the fluctuations in the market which needs to assessed in fine detail to ensure its leadership positioning in the market. Twice in seven years, there was a dip in profits which is a reflection of the growing competition and emphasizes the need to take appropriate measures to maintain the projected growth rates. It also stresses on the need to work on the rapidly changing technology segment. Its present focus is on the flash memory segment, which looks poised for growth in the coming years but the existing competitors have already captured a major chunk of the market. Samsung has been in the race in inventing itself according to the needs of the customer base, but the entry of Chinese companies will make it more