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Innovation at Samsung
Group 6

Background

Founded in 1969 South Korea as Samsung Electric Industries Started as OEM for electronic appliances such as TVs, refrigerators etc One of the largest Korean company to become a global player Emphasis on innovation culture in organization Semiconductor division - world's largest memory chip manufacturers Has spent enormous sums on marketing and branding Heavily invested in research and development
24 R&D centers around the world

SWOT Analysis Strength

Robust market position bolstered by the strong brand equity

Weakness

Instances of product recalls reflect poorly on brand image of the company Constant focus on R&D Unfunded employee post retirement benefits Diversified business portfolio across multiple product categories

Threats Samsung
Highly competitive business environment

Opportunities

Strategic alliances which enhances the company's product offerings

Stringent environmental regulations

Growing global mobile phone and tablet market Currency risk

+ Product Lines
Visual Display Business Largest market share amongst all players 22.1 % IT Solutions Innovative products like LED TV rapidly introduced Laptop & Printer range targeted at consumers & business Appliances Home 20% of the laser printer market Refrigerators, Washing machines, Air conditioners etc. Contribute $50b (1/3rd) but very little to overall profits Mobile Communications LCD Business Extensive range of smartphones shipping 210 million units Engaged in fierce legal battles with Apple over patents Telecommunications Equipment Telecom switches, multi-standard mobile base stations Focus on 3G, Mobile Wimax & 4G with 24.5% market share Digital Imaging Innovation in the form of the smallest SLR camera Acts as third party supplier to a lot of TV and consumer electronics manufacturers Plastic LCD, Transparent LCD innovations Semiconductor Business Largest manufacturer of flash memory & DDR2 RAM Second largest manufacturer of logic chips after Intel

Innovation Process
The Spiral Process of Innovation Has grown to become a Technological Innovator Differentiated R&D Fusion Technology Green Innovation Leading by Design External Idea Generation Partners Innovation Initiatives Samsung Innovation Quotient Process Innovation Knowledge Management Process Innovation Six Sigma Process redesign and process improvement Problem solving through TRIZ

Consumer Facing Innovation

Engineering driven to consumer facing The role of processes Data Analysis Consumer Value Proposition Balancing functional and emotional

Audit

Results of questionnaire

Dimension

Score Obtained

Maximum Score

Comments

Idea-Generation

11

18

High scores indicate idea-poor company

Idea-Conversion

12

High scores indicate conversion-poor company

Diffusion

High scores indicate diffusion-poor company

Framework Used

Resource Avaliablity

Competitor's innovation strategy and Industry evolution

Technological Environment

Innovative Strategy

Structural and Cultural Context

Strategic Management Capability

Understanding Competitors Strategies and Multi-Industry Evolution

Resource Availability and allocation

Understanding Technological Environment

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