This study analyzes the effect of standardization in the products and the relation between environment, which is represented as standardization and the growth rate of business, and business strategy in Korean server business. It also analyzes the influence of environmental fitness of business strategy on the business' output (growth rate, market share, profitableness) through reviewing some case studies of 'Corporate Network Business Unit' of Samsung Electronics. And through this analysis, the main theme of study is to present the fitness strategy of the 'Corporate Network Business Unit' of Samsung Electronics with the functional strategies in details. Focusing on the thesis topic, results are summarized as follows.
Firstly, the higher at the degree of standardization in server business, the smaller gap(superiority, uniqueness) in products among makers, and the less cost in securing main complementary assets of the server products, like a software. Additionally it can cut switching cost paid by the guests, bring the effect of 'economies of scale' through mass sales. And it can increase the significance of generic assets, like channel, through the tendency of products' commodities.
Secondly, the higher at the degree of standardization and at the growth rate of business, the more market competitors in wider range. In the world of PC server market, the leading companies' share is reducing today, while it is growing in Korean market.
Third, Korean PC server business which has already achieved a high degree of standardization and growth rate is needed to adopt the cost leadership strategy of wide range, and the factor of inner fitness in here is its endeavor of cost down. On the contrary, Korean high-end server business which is in the situation of low degree of standardization and growth rate needs differentiated focusing strategy, and the factor of inner fitness of it is the ability of technology development and marketing.
Fourth, in the case that the business strategy at Korean server business is suitable to the environmental fitness, the growth rate and market share will be increased by cost leadership strategy in the wide range, but the profitableness can be increased by performing a differentiated focus strategy.
Fifth, 'Corporate Network Business Unit' of Samsung Electronics, the representative Korean server maker, has performed the cost leadership strategy and thus showed a high rate of growth and market share in the PC server products. While in the high-end server business, the profitableness is not increased due to the low rate of environmental fitness. As a complementary measure about this results, this study suggests business strategy of Korean server maker including functional strategies.
