SAMSUNG ELECTRONICS: Charting a Risky Direction without Internal Support In worst times of Samsung in 1996, a hope came in the form of their new CEO, Yun Jong Yong. His different components of strategy model and leadership is discussed or reviewed in the form of Marketing Model as follows: 1. Strategic Focus: * Value Proposition: The CEO set the stage for gaining global leadership by enunciating a bold strategy. * Trade off articulation: To be a leader in creating new products designed to be distinctive and cool. Key Goals for the year: i. Change the market position in United States and Europe from Price-oriented copycat manufacturers to a “Premium priced product leader whose wares were sold in most upscale retail outlets. ii. Continue its policy to be vertically integrated (forward integration -customers, backward integration-suppliers) and turn its memory and component design and manufacturing into an asset by providing direct access to the latest technology.
* Key Strategic Initiatives: i.Build a brand outside Korea. ii. Sponsorship and advertising.
2. Organizational Identity: * Broadcast of the Identity: Samsung started advertising effort around the Tag-line “DIGITALL” in 1999. This slogan signaled that Samsung was a leader in the digital convergence world, which would apply to all people and all products. 3. Environmental Scans and Plans: * Partnership Building and Maintenance: Samsung invested in AST (manufacturer of personal computers in USA) in 1995 and bought the entire company in 1997. 4.
Internal Scans and Plans: Samsung was recognized as the top information technology company in the world and its brand was valued by Interbrand at $ 8. 3 billion ranking Thirty-Fourth in the world. 5. Products and Services: * Products and services strategies: Samsung introduced Plasma TV to robotic vacuum cleaners to refrigerator-freezers that tell you when you are low on milk to bracelet cell phones. 6. Reinvention and Renewal: * Assumptions and beliefs: Samsung could best be communicated by sports sponsorship.
. Strategy Process Effectiveness: * Strategic planning and Action Planning are linked: Focus on Quality Listening to markets Creating distinctive advantages Being the best Anticipating the future Creating an organizational environment to foster innovation and growth Contribute to a better global society. 8. Leadership: * Ensuring that A Vision Exists: Yun Jong Yong had a vision to take Samsung to top and he did through his leadership skills and bold strategies.
* Mobilize resources:Samsung sponsored several sports events including the 1998 Bangkok Asian Games and the crown jewel was to sponsor the Olympics starting with 1998 Winter games in Nagano,Japan. * Develop Leaders at all Levels: Yun hired Eric Kim as global marketing Head in 1999. He was determined to to get the global silos to be on the same page. He replaced the company’s fifty-five advertising agencies with one global strategy. In part to emphasize the global future of the firm, He made his first big presentation in Korea to four hundred top Samsung managers in English.