‘the Paradox of Samsung’s Rise’

Published: 2021-07-13 04:15:06
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This Harvard business review explains the difficulties that Samsung faced when they were trying to go abroad with their company and associated products and also how they changed their business system to make their company an international success. This review is written by Khanna, T. , Song, J. and Lee, K. The title of this review is ‘The Paradox of Samsung’s Rise’, it was published on July-August in 2011 and consists out of six pages in total. The main aim of this article is to let the reader know how Samsung succeeded in becoming a global and powerful company. Samsung did this by changing their integrated business system.
This system was a total success in their home country, but for them to go abroad and compete with competition in foreign markets, they had to change their system. Lee Kun-Hee, the man that followed in his father’s footsteps of the company, knew he had to engage with non-Koreans in non-Korean area to know more about the business practices abroad. So, he decided to bring new thinkers from the outside in the company and he let talented employee’s go to foreign countries. They had to learn the country’s language and create a network there. Once they did that, the employees could carry out a project by themselves. Once they were done, the employees came back and filled in key positions in the company or abroad. The new thinkers from the outside were given important positions within Samsun right away. At first the original Samsung (Korean) employees were not too happy with the newcomers, because they got promoted right away and also, they came with new different ideas.Eventually the original employees got used to these ideas and they cooperated well. This way Samsung exchanged their well-integrated system for global practices that they had never used before. BodySummaryThe article “The paradox of Samsung’s rise” is about the change of the South Korean Samsung Group from a low-cost manufacturer to a world leader marketing, research and development and design. This development shows they are selling their high quality products all over the world. The last twenty years Samsung combine their Japanese standards with know how from western economics. The Japanese standard business was introduced by the first chairman Mr. Lee. Even when they change their successful strategy they still became successfully. Because to operate in other countries they had to change their integrated business system. The risk for them operate the world market was to lose their involvement in their home market. Founded was Samsung in 1938. Its popular for several electronic devices.
They are selling especially mobile phones, and also LCD Panels and TV’s. The progress of the mobility, authenticity and constructiveness was copied from “western best practices related to strategy formulation, talent management, and compensation into Samsung’s existing business model”. It “spotted an opportunity in the reluctance of Japanese companies – the analog market leaders – to adopt digital technology”. To get a better knowledge about international business standards they sent inductees to research them. These “S-level talents” adopt the practices from western firms and generate a western friendly environment from the mindset they bring from abroad. Furthermore Samsung “sent its elite officers overseas to study successful Western practices and institutions”. They were sent to several destinations applied to their unique specialization. Some were sent to Japan and some to the USA. The last point of Lee’s policy is to shelter his long-time goals. When he is doing long-time investments he want to protect them from short-time financial problems. Evaluation of the structureThere are multiple strengths that we found in this review. In this article, the paradox of Samsung’s rise is explained, in our eyes, the writers did a good job doing that. We think that every reader is able to understand what that paradox includes.
The whole review is constructed in a chronical way, and all the different actors are explained detailed and with examples. First of all, the writers explain how the former structure worked for Samsung, but had to change in order to go global. Then there is an explanation of which barriers there are between the former (Japanese) system and (Western) system. This is also detailed displayed in a table, where one can also find their current (Hybrid) system. Especially, the chronical way of explaining and the detailed elaboration makes it easy to follow. ConclusionOur conclusion is that it was very important for a company like Samsung if they want to expand, they really needed to change their basic strategy. Together with the idea of risking their own market for becoming a greater scale company and their reinvention of Samsung itself shows that they needed to have a different strategy. It is truly a great example of a company that changed from a national company that was really successful to an even bigger global company with billions and billions of revenue. Their different way of thinking and using western employees for creating a different atmosphere and way of business makes them together with the Japanese business systems and economic programs a perfect fit for the market, and becoming of the greatest players in the field at the moment.

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