Samsung – Core Competency and Competitive Advantage
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SAMSUNGSamsung is a South Korean multinational conglomerate which is headquartered at Samsung Town, Seoul. It was founded in 1938 by Lee Byung Chull as a trading company in South Korea. It operates in 80 countries with 489,000 employees approximately. It started as a small export business in Korea but now has been around 79 years. Samsung is a world’s leading electronics companies specializing in media, digital appliances, memory, semiconductors, and system integrations. Samsung is the world’s leading providers of digital convergence technologies and digital media. Samsung Electronics, the flagship company lead the global market in high-tech electronics manufacturing and in digital media. Samsung has strong brand equity and it is involved in the (CSR) corporate social responsibility which initiates to benefit the society. The company has a very much diversified product portfolio and its products are available all over the world.Core Competency and Competitive Advantage:Core competencies of a company can be defined as the set of skills and expertise that enable a company to deliver exceptional value to the customers. Samsung’s core competencies are “new technology”, “innovative product”, and “creative solution”. Samsung uses the new technologies to create the innovative products and the creative solutions. It also looks for creative people, technology leadership, innovative culture and customer value creation.[pic 1]                                             Core Competency 1
Samsung has the diverse and multicultural employees who help in bringing the diverse and wide range of views to the company. Globalization plays an important role and Samsung’s researchers, designers, and strategists have an eye around the globe to understand the needs and lifestyles of consumer’s in the world market. Samsung’s global strategy group is at the top of global trends. Becoming a leader of the digital convergence revolution is Samsung’s vision. To achieve this goal, the company has transformed its operations, putting digital technology at the core.Through innovative and reliable services and products, talented bunch of people responsible to approach to business and a global citizenship Samsung is taking the world in imaginative new directions. Samsung’s management philosophy states that they will devote human resources and technologies to create superior standard products and services which will contribute to the better global society.Samsung at any given point have several competitors in the world. The company has survived even in the case of competition, nonetheless. The reason is that it has core competencies giving it a competitive advantage. The products of Samsung designs are very specific and the design exactly corresponds to the market demand. Also all the Samsung’s products have good quality; and they constantly introduce new and strong technologies and new products. Semiconductor section has technical advantages. The competitive advantage of Samsung can be summarized as reduced cost and formation of cost performance advantage from manufacturing a large number of devices. They think its competitive advantage lies not solely in its scale but also in its ability to innovate. Capabilities are the source of Samsung’s core competencies which are the basis of competitive advantage.