Company Case Samsung

Company Case Samsung

1) How was Samsung able to go from copycat brand to product leader?

According to Kotler/Armstrong new product development is defined as the development of original products, product improvements, product modification, and new brand through the firm's own product development. Samsung was able to go from copycat brand to product leader by using a "new product development" strategy (Kotler and Armstrong, p.261). In 1993, the CEO and chairperson, Lee Kung Hee decided to overhaul the company's management. He sat a high standard and established a strategic plan to accomplish those goals. (To dethrone Sony as 0the biggest consumer electronic brand at the time) and Samsung achieved their goals very quick and has been very successful since then. One of the first steps that Lee Kung Hee took was to hired young and innovative designers to produce new ideas that could get the company in the direction that he wanted it. They wanted to have more Sleek, bold and beautiful products so that they could target high-end users. The next idea was also implemented in the development stage (Kotler/Armstrong, p. 264). Each product had to pass the "Wow" test otherwise; it would have to go back to the drawing board for further improvement (Kotler/Armstrong, p.285). Then they went further by testing new product concepts, everything from Blu-Ray players that changed colors, Eco-fit monitors with transparent stands that gave the appearance of a floating monitor, to a small Pebble MP3 player that is so simple "that even grandma can use it", and they wanted to demonstrate that they were not a copycat brand anymore. Samsung removed its products from low-end distributors like Wal-Mart and Kmart and built strong relationships with specialty retailers like Best Buy and Circuit City instead. Samsung started to target the high-end users and used position to make consumers believe that Samsung had stepped up their game from a low-end product to a "state of art" product.

2) Is Samsung's product development process customer centered? Team based? Systematic? Samsung's product development is customer-centered, team based and systematic.

I would say all three of them. It is definitely company based since It focus on discover new ways to cracking difficulties and create more of a satisfying experience for their customers. For example, the introduction of Samsung's Luxia LED TV solved the problem of bulkiness, clearer specs, and also the weight that consumers were experiencing with other brands. (Kotler/Armstrong, p A14-15. Case) Consumers were able to enjoy this product because it satisfied their needs better than other products that other companies had made.

When it comes to team-based, is because every new product that was created by the developers was required to pass the "Wow" test in order to make