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Samsung and Its Story Of Achieving Success Through Innovation
Samsung, the brand which doesnt require an introduction in the modern era has started its journey from making cheap electronic gadgets (calculator, black &white T.V) in the early 90s.However, today its the leading manufacturer for the mad finishing models in the television industry. You name it and they have it, in other words, they made a drastic change in the industry not only in the Television sector but also in the majority of the home appliances. In addition, the South Korean leading firm owns the largest insurance company in Korea.
Samsung adopted a complete top to bottom approach. Lee Byung-Chull, the new chairman has redefined the goals of the organization in order to achieve the tag of number one manufacturing firm for electronic goods by beating Sony, the then industry leader. Firstly, Samsung focused on the size as well as the design for the products, and to do this, the company has hired a number of young designers. The Key result areas were set to make a product that is bold and fine and the target market was the premium consumers.
All the products had to go through a Wow test which is nothing but certification from the end user whether or not the design has been able to draw the attention of the consumer. The products with a positive comment were launched to the market whereas the latter was sent back again to the design studio. Not only the companies targeting even the positioning was accurate enough to match up with the speed. The company has refused to build a limited relationship instead it tried to maintain a strong bond with all the distributors. In less than two decades Samsung has achieved a revenue of $117billion.
Samsung introduced a variety of new products. Samsung became more than just an electronic firm and it was now the only firm that came up with hundreds of new products with their exciting features. Samsung understood that to sustain itself in the market one needs to extend the product line as it will create value for customers, an interested customer would always look for a better product with excellent features but an affordable price indeed. Samsung did analyze this strategy with no delays. The consequences were easily predictable, the existing products have beaten the competitors while the new product has generated additional revenues for the company. Thus company repeated this process of new product development and emerged with excellent new products like Samsung Luxia LED with the thickest glass, Samsung Y3-Sp2 an mp3 player with its astonishing colors. All the products were launched to show a new innovation to the industry example the Ecofit monitor was mainly designed so that the consumer felt that it was floating in the air. In the same way, the mp3 player was made that friendly to be used by an old grandmother. Hereafter Samsung was no more a company that produces only cheap gadgets instead it has crowned itself in the industry. The galaxy models became the game-changer for the company by which the company has earned double the profit. Though the market was competitive the competitors could do nothing against the top Galaxy model with all the modern web facilities like E-book, Reader, and a high definition camera. Samsung has never followed any positioning strategy which we could see as the reason for going to the remotest village.
Samsung the global leader for electronic goods steps towards continuous improvement. Each firm has to its maturity stage and Samsung has stepped into that. We all know that all the products have to pass through four stages known as introduction, growth, maturity, and decline.
- Introduction: This stage product has been just launched it never thinks of picking the peak rather this stage company has to bear the maximum cost for launching and market testing. In the above text, we saw it when Samsung did come with the idea of big-screen smartphones in order to tackle Apple and also it introduced smartphones which enable the user to connect it with their Televisions;
- Growth: Samsung had noticed high profit in all the sectors and many of the magazines put Samsung top on their list. In addition to that Samsung has also been awarded the best design-oriented firm. However, Samsung achieved its peak while practicing all the preplanned strategies;
- Maturity: The giant conglomerate has accepted that though it has climbed a remarkable success it is no more new to the consumers. Therefore, the management has invested a huge amount of money for the Research team to discover new outcomes. The company has had come up with enjoying features like T.v connector smartphones, big LED displays with sharper colors and beautiful displays. Not only that Samsung made a boom in the television industry what made all the cable operators rethink the services they provided;
- Decline: This is the stage where the sales are likely to fall, the consumers are no more interested in the same product, therefore, switched to the competitors product. Here we did see Samsung has wonderfully held to its customers. The main strategy was spending a lot in R&D labs. The company admitted that there is no big deal of being a so-called leader rather it opted for new product development and maintain its position in the market.
In, conclusion Samsung is really an innovator in the field of electronic goods, and in spite of its great achievements, it is continuously developing because of its innovative thinking and continuous modification of the product. The South Korean firm uses the tagline Next is What .
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