Introduction

Samsung made its first investment in Malaysia in 1989, during the wave of
relocations of Japanese and Korean manufacturing companies after the Plaza Accord
1985 which brought about the dramatic appreciation in their currencies. According to
Samsung, Malaysia is a strategic location as a manufacturing export base as well as a
market for high-value technological products (Labour Resource Centre 2006:163).
Samsung Malaysia Electronics (SME) Sdn.Bhd. engages in distribution of consumer
electronics. Its products include mobile devices, television, camera and lenses,
information technology products, home appliances, and memory storage devices. It
was founded in 2003 and is based in Kuala Lumpur, Malaysia. Samsung Malaysia
Electronics (SME) Sdn.Bhd. operates as a subsidiary of Samsung Electronics Co. Ltd.
Samsung has invested mainly in consumer electronics in Malaysia. These investments
are made mainly by three of its global subsidiaries: Samsung Electronics Co. Ltd.,
Samsung SDI Co. Ltd., and Samsung Corning Precision Materials Co. Ltd. Samsung
Electronics are a leading global manufacturer of digital TVs, memory chips, mobile
phones and TFT-LCDs. The core business of Samsung SDI is in display and lithium
ion batteries, while Samsung Corning specializes in the production of parts and
materials for flat panel displays. Samsung invested RM1.5 billion when it first came
to Malaysia about 30 years ago. With its latest investment of RM2.2 billion for
undertaking the design, development and manufacture of lithium ion cells and battery
packs, Samsung has become one of the largest foreign investors in the country
(Bernama 2012).
The first manufacturing plant of Samsung Electronics was Samsung Electronics
Malaysia (SEMA), which manufactures microwave ovens and magnetrons. Located at
Port Klang, one of the busiest ports in Malaysia. Samsung Electronics Co. Ltd plays
an important role within the Samsung group in Malaysia. It owns three of the six
subsidiaries of the group, i.e. SEMA, SME, and SDMA. In 2011, these three
subsidiaries contributed 91.4 per cent of the total revenue and 83.4 per cent of total
pro/it after tax of the Samsung group in Malaysia.

Samsung Galaxy Note 7 Explosion issue arise in Malaysia

Samsung Galaxy Note 7 is first launch in oversea county by 19 August 2016, to date
as of 1st of September there have been 35 cases reported globally that the cell battery cell
issue cause cell phone explosion and it also bring threat to the flight safety included airlines in
Malaysia.Airasia Samsung are currently conducting a thorough inspection with their suppliers
to identify possible affected batteries in the market. However, because our customers safety
is an absolute priority at Samsung, the organizations have stopped sales of the Galaxy
Note7.Samsung is committed to producing the highest quality products and take every
incident report from their valued customers very seriously. In response to recently reported
cases of the new Galaxy Note7, Samsung conducted a thorough investigation and found a
battery cell issue. Samsung is allowing their customers who already have Galaxy Note7
devices to replace their current device with a new one over the fixed period. Customers may
contact Samsung Malaysia Carelinefor further enquiries of their current Galaxy Note 7 device
before replacement takes place.

http://www.nst.com.my/news/2016/09/170324/good-call-malaysians-can-replace-theirsamsung-galaxy-note-7
http://www.soyacincau.com/2016/09/02/official-samsung-stops-sale-of-galaxy-note7-existingunits-to-be-replaced/
http://english.yonhapnews.co.kr/news/2016/09/02/0200000000AEN20160902009400320.html
https://www.lowyat.net/2016/113295/samsung-issues-global-recall-for-galaxy-note-7/

1. VALUE, RARENESS, IMITABILITY, AND ORGANIZATION (VRIO) ANALYSIS

This part analyzes the internal resources and capabilities of BIMB Holdings Berhad,CIMB Group Holdings Berhad and Malayan
Banking Berhad using the VRIO framework.
RESOURCE/ CAPABILITY

VALUABLE

RARE

COSTLY TO

ORGANIZED

IMITATE

TO EXPLOIT

COMPETITIVE IMPLICATION

Samsung Group Malaysia

Strong Brand Reputation

Yes

Yes

Yes

Yes

Sustainable competitive
advantage

Innovative Product

Yes

Yes

Yes

Yes

Sustainable competitive
advantage

Employee Selection and

Yes

Yes

Yes

Yes

Retention policies
Diversified Product Line

Sustainable competitive
advantage

Yes

No

Yes

Yes

Competitive Parity

Samsung Group Malaysia

Strong Brand Reputation

Valuable:High market share in electronic industries help Samsung increase their

brand reputation.
Rare:In Malaysia, only few electronic production companies have strong brand

reputation.
Costly to imitate:It is expensive and takes a long time to develop a brand.
Organized to exploit:Samsung is the worlds most successful electronics
manufacturer. It is the worlds largest manufacturer of television sets, liquid
crystal display (LCD) panels, mobile phones and smartphones.

Recommendation: Based on the explanation above, I recommend that

strong brand reputation can be a sustainable competitive advantage.
Innovative Product

Valuable:Samsung Group have their own strong research and development team

to innovate new product with shorten time.

Rare:There is rare companies is able and own the financial resources to innovate

new technology product.

Costly to imitate:It need to be spending huge capital and longtime taken to

innovate a new technology product.

Organized to exploit:Samsung is managing their innovation in product very well,
they are the first organization to laugh motion control sensor TV in the market.

Recommendation: According to the explanation above, I recommend

that robust capital adequacy and liquidity can be a sustainable
competitive advantage.
Employee Selection and Retention Policy

Valuable: Samsung is giving high pay for their innovative employee and
Samsung Malaysias employees create valuable intellectual property for company.

Rare:In Malaysia, there is limited talent in technology innovation company since

the talent market in Malaysia is not mature enough.

Costly to imitate:It requires knowledge, experience, a team of specialist, and high

pay-off to recruit a talented employee.

Organized to exploit:Samsung Malaysia were awarded No.1 employer in the
electronics sector by Malaysias 100 Leading Graduate Employers 2013.
Recommendation: On the basic of explanation above, I recommend that
Full-Fledge Islamic Stock Broking Firm is the sustainable competitive
advantage.
Diversified product line

Valuable: It enables Samsung to fulfill more customers need, so can attract more

customers and increase market share.

Rare:Electronic manufactures in Malaysia usually produce variety of products.
Costly to imitate:It is costly to implement a diversify product line in a company.
Organized to exploit:Samsung Malaysia has built 6subsidiaries tooffer its
diversified products line, including SEMA, SME, and SDMAwhich product LED
TV, washing machine, cell phone component and extra.
Recommendation: Due to diversified product line is not rare, and thus I
recommend that it is competitive parity.

Samsung

Malaysia

Electronic

Organization

Structure

Samsung Malaysia Organization Culture

Samsung Malaysia create a health atmosphere
Samsung Malaysia fosters positive working relationship by prohibiting
offensive practices such as sexual harassment, violence and impropriate
monetary transaction between employees. The companies also do not
allow

favoritism

or

private

groups

based

on

external

affiliations

detrimental to harmony within the company. Samsung Malaysia establish

win-win labor management relationship based on mutual trust and open
communication
Samsung draw a strict line between public and private affairs in
all business activity
When the interest of company and individual conflict, the legitimate
interest of the company shall take precedence. When do not tolerate the
appropriation of company asset or use the company influence for personal

gain. Samsung do not allow securities transactions based on insider

trading. Samsung Malaysia also respect the intellectual property of others
by

avoiding

acts

of

infringement

modification or use without permission.

such

as

copying,

distribution,