This study has two purposes. First, it investigated the reasons for why the development of other Samsung electronics products are in a poor progress, compared with memory products that have been the no. 1 in the world since year 1993. Second, it proposed strategic measures, which can promote Samsung electronics, a true world leading company.
As an attempt to reach these purposes, this study tried to find out core competence of which enabled Samsung memory and TFT LCD products to be world widely successful, and also analyzed the problems of other unsatisfactory products. As a result, it has revealed that the core competence of Samsung electronics is its effective manufacturing process and daring investment, and problems are poor development and marketing abilities.
According to predictions about the size and growth of a semiconductor world market until year 2003, it is said that microcomponent product lines will slow down its rate of growth although it will still remain the largest in its market size. As for promoting measures for strategic products based on Samsungs competitive ability, memory product lines should be continuously developed. In addition, analog, logic and microcomponent products should be promoted as strategic items. Considering Samsung electronics core competence and current situation, four strategic measures are suggested in this study as follows.
First, resources should be concentrated on the development of products which the company can maximally make use of its current core competence. Second, resources should be concentrated on the development of products that can maximize the synergy effects of the most successful memory products and TFT LCD. Third, resources should be concentrated on the development of world leading products jointly with Samsung group or other domestic electronic companies. Fourth, continuous investment should follow to improve unsatisfactory marketing and product development abilities.
The above is the strategic suggestions for product diversification. These suggestions can hopefully be applied to determine the priority order of investment on product development.
