Samsung Business Strategies
Taking a simple trading business that Samsung was, from a local enterprise to a global leader in several industries, initially without crucial technologies, is no mean feat; it involves taking and implementing certain strategic decisions. Here are strategies that were key to the massive business success of Samsung over the decades, which you can adopt in managing your business:
Having A Business Philosophy
The beliefs you hold about business is very important. They shape your attitude towards the running of your business, make your focus clearer, and motivate you to reaching your business goals.
What is your business philosophy? Do you want to be the producer of the highest quality product in your industry, the most customer friendly company, the most technologically advanced company, the maker of the safest product in your industry, or the most educative company? Whatever it is, you must stand for something.
For Byung-Chull Lee, his philosophy was to be market leader in any industry he entered. This guided his thinking and actions to achieving his business goals.
Investing In Developing More Capabilities
To be more competitive in your business area, you need to be ahead of your competitors in creating more value for your target market. And that means investing in acquiring more knowledge and abilities should be a priority.
To be able to compete favorably Samsung invested heavily in developing and acquiring technology in the early 1970s.
Envisioning The Future
As business owner, manager, or entrepreneur, one of the greatest traits to develop to run your business successfully is the ability to predict where your industry will be in future, and how your business might be affected. This will enable you to plan for the future and position your company to be able to take advantage of the opportunities that will be evolving.
Lee formed Samsung Semiconductor and Telecommunications Co. in 1978 to position Samsung strategically in the chip making industry because he had observed that high-tech was going to experience massive growth in the future. True to his prediction, high-tech did become massive, and Samsung was there to reap the huge profit that was available, becoming the worldâ€™s largest manufacturer of DRAM chip in 1995.
Partnership Is Better Than Competition
In partnership ideas and knowledge are shared and so, much more better ideas and knowledge become available to solve perceived challenges and achieve set goals. In competition on the other hand, ideas are hidden, and individual business spend much more resources and time in acquiring knowledge, which sometimes they may not eventually achieve.
Wherever and whenever it is possible, partnering with other companies in your industry on some projects can be beneficial to achieving certain goals.
To achieve the production of higher grade DRAM chip, Samsung partnered with some of its local competitors in a joint research in the early 1980s. From the knowledge it acquired from the joint venture, Samsung moved on to become a major world manufacturer of low-cost DRAM chip.
Preparing For The Top
Success doesnâ€™t happen by accident, if you desire to be at the top of your industry, you need to make adequate plan for it, and work towards achieving it.
When Kun-Hee Lee took over the management of Samsung after the death of his father, one of his goals was to make Samsung the leader in semiconductor industry. To achieve this he partnered with some U.S. and Japanese electronics firms, which possessed advanced semiconductor technology, acquired some companies with the technology, and invested hugely in research and development. Not surprising, this goal was achieved in the early 1990s.
Read Samsung’s business success story here: How Byung-Chull Lee Made Samsung A Global Business
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