Samsung Analysis

1/Identify the ressources and competencies of an organization with which you are familiar using Exhibits 1 and 2 (WA). I decided to undertake an analysis of the Samsung company because I spend a full year in South-Korea, from july 2011 until august 2012. Hence, Samsung is an extremely important conglomerate in this country, working there is for many considered as a « dream-job » and furthemore produce as much as 20% as the country total exports.

Samsung is well known for their electronic product created by the electronic subsidiaries of the company, Sansung Electronics. Their flagship phone, currently being the Samsung Galaxy S3 sold over 40 millions units. They produce TV, Computer, Display, semiconductors, Cameras…

But if Samsung is mainly known in the western countries for the Samsung Electronics subsidiaries, it is possible in Korea to live your whole life with Samsung products. Indeed, among the subsidiaries, we can find Samsung Life Insurance, Samsung Heavy Industries (mainly a shipbuilder subsidiarie), Samsung C&T… There is even some « Samsung Cities », like the Suwon Samsung Digital City. It is areas where only the Samsung employees and their families are allowed to get in. Here, there is appartment, school, hospital, entertainment, and everything one’s need to lead a life, except that everybody around you is working for samsung.

Indeed, Samsung is producing itself almost all the component the company need. So there is enourmous production needs, that lead to enourmous production site. Many of the Samsung employee have so no other choice than living on site with their family. If I am introducing this company that way, it is in order to help us understanding some of the most valuable asset of the company. Samsung has won the trust and the loyalty over thousand of workers who are willing to go the extra mile for the company. Korea is famous to have one of the longest work time in the world. Indeed, in most of the companies workers must be willing to do many hours.

Samsung has the intangible benefit of an extremely flexible workforce. But not only flexible, this workforce is also particularly well educated, thanks to the korean education system, one of the hardest in the world.

As we said earlier, working for Samsung is considered for many as a dream job, and Samsung workers are more willing than any other worker to go to the extra mile, because they receive a better treatment than other workers in similar Korea company as LG, etc. (In term of salary, but also in term of insurance, and retirement plan : we should not forget that Samsung is not only Samsung Electronics, but also Samsung Life Insurance, and so this company can offer excellent deal to their workers). There is also a prestige for working at Samsung.

Consequently, Samsung can easily recruit the elite of Korean student, of Korean researchers, and this indeed is an extremely important competitive advantage other the competition. No company in Korea has this attractiveness, and outside Korea only Apple and Google might be able to have similar advantages. But Apple and Google are western companies, and this mean that not all of their workers agree to give their life to the company. They are certainly not as much loyal as Samsung worker, because Samsung has become part of Korea itself, a national pride.

This allow Samsung to have an outstanding capabilities for bearing mass production of any given product at any time.

Without the willingness of Samsung employees, the company would certainly not be nowadays worldwide number one top selling smartphone company, neither be able to produce high quality product and being recognized worldwide fortheir quality.

2/Undertake an analysis of the strategic capability of an organization with which you are familiar in order to identify which capabilities, if any meet the criteria of (a) value, (b) rarity, (c) robustness and (inimitability).

Value : dedication of workers

Rariry : yes, considering the high defection of over compoanies

Robustness :Strong, linked to the samsung reputation

inimitability : high, because part of it doesnt depend on the company but from the worker’s culture

Porter swot