Samsung: From Gallop to Run, Case Study Example

Q1. How was Samsung able to go from copycat brand to product leader?

A1. Samsung was able to go from copycat brand to product leader by focusing on product innovation, visually appealing design, and customer’s expectations. The company knew that it can only chain its perception and gain pricing power if its products appeal to customer’s senses and are seen as cutting edge in terms of innovation. The company set the ‘Wow!’ benchmark for its product designers that any product that fails to mesmerize the customers during test marketing will go back to the design board. In addition, the company also changed its distribution channels so that its products are seen as specialized electronics instead of cheap affordable products.

Q2. Is Samsung’s product development process customer centered? Team based? Systematic?

A2.Samsung’s product development process is customer centered. Samsung’s doesn’t approve its products unless they succeed the ‘Wow!’ test during customer test marketing. The company switched from Wal-Mart and Kmart to Best Buy and Circuit City because it wanted to change consumers’ perceptions of the company’s products. When the company embarked on a new journey of product innovation instead of copying other leading brands, its goal was to become the number one consumer electric company. The company realized that to become the largest consumer electric company, it had to do a better job of understanding consumers’ needs which it did by diversifying its product lines. Now the company makes everything from TVs to DVD players to computers to music players as well as product components like monitor screens and flash memories.

Q3. Based on the PLC, what challenges does Samsung face in managing its high-tech products?

A3.The greatest challenge facing Samsung is to innovate and come up with products that continue to win consumers. Samsung CEO addressed the company employees in a memo that the company’s main products may likely become obsolete within the next 10 years. Thus, the challenge for the company is to predict the products of tomorrow and create product lines that continue to capture consumers’ hearts and wallets. This is why the company has unveiled $23 billion investment plan so that the company stays ahead of the competition and quickly builds market shares in products that will rule the consumer electronics in the next few years.

Q4. Will Samsung likely achieve its goals in markets where it does not dominate, such as smartphones? Why or why not?

A4. Samsung will likely achieve its goals in markets where it doesn’t dominate such as smartphones because the company already enjoys huge scale and has presence all over the world. Thus, it already has an established brand and wide customer base. The company’s smartphones such as Galaxy S have enjoyed a strong debut and are carried by over 100 mobile operations worldwide. Unlike other leading smartphones brands such as Apple and Blackberry that use proprietary and restricted operating systems, Samsung’s smartphones use multiple operating systems such as Android which is open source and Windows 7 mobile operating system among others. The company has unveiled ambitious investment plans aimed at predicting tomorrow’s technologies and build markets in them before the competition. The company is also looking forward to integrating its different products to build overall consumer experience just as Apple does. The company expects to further diversify its revenue base by entries into proprietary software which may support advertising platforms as well as collect precious data about consumer habits. Thus, the brand awareness, brand loyalty, scale, and huge worldwide presence make it quite possible for Samsung to gain market leader positions in product categories such as smartphones just as it dominates the TV category now.