This strategy can be used to reduce cost in multiple ways. Firstly through online bidding and order processing the need for sales calls is reduced resulting in lower cost of sales. Using Web based inventory control system can result in lower storage costs. Also, response time can be made quicker using internet based knowledge system which consequently leads to more satisfied customers. All these contributes to a reduction in costs, allowing the organization to invest more on research and development, for instance, or reduce selling price, making it easier for Samsung to achieve and maintain a competitive advantage.
Customer Service Strategy
In this strategy, emphasis is put on ensuring that customers are satisfied with the service provided by the company. This can be done through proper and effective communication system. The aim is to get feedback about the customers experience with the service or products of the company. Employees need to be trained in order to deliver excellent customer service. Samsung provides customer service through social media. They have separate accounts for different countries which provide service in their own native language.They have a dedicated team working just for customer service 24/7 which can handle requests professionally and privately in each country they operate on. I’m
The innovation philosophy of a company is shaped firstly by
(i) Innovation Emphasis
This involves determining where the innovation efforts should be; for example whether the innovation efforts should be more towards scientific research (which is crucial for companies like Samsung as they are involved in highly competitive markets) or product development strategies which, like scientific research, can contribute a lot to the achievement of high levels of differentiation resulting in more competitive advantages.
Furthermore the company may also decide to put more innovation efforts towards process development which involves new innovative improved ways in the work process. For example the use of new technology such as robots or Computer Aided Design (CAD) or Computer aided Engineering (CAE) which allows more efficiency, lower wastages and consequently lower costs for the company. This also contributes to more competitive advantages for the company since it could allows it to sell products at a lower price.
(ii) Innovation Timing
This is concerned with determining whether the company wants to be the first mover or followers of the first mover in the industry, whereby they would mimic the products or processes of the first mover. The first mover is the first company in the industry to be involved in innovations in terms of new products or processes. They enjoy control over scarce resources, cost and learning benefits and opportunities to create strong customer relationships leading to more loyal customers. However the drawbacks of being the first mover include high development costs, having financial resources at risk, uncertainty of success, among others.
The above are involved in the decision of the innovation strategy of the company.
This refers to the expansion in scale of operation. Growth can take place in the following forms :
(i) Internal Growth : It involves an increase in size of production within the company; external businesses are not involved
(ii) External Growth : It involves an increasing the size of production by integrating with other business through merger or takeover (acquisition)
This can result in more revenue, more employees and increased market share.
Product Differentiation Strategy
Differentiation of smartphone on hardware grounds is not an effective option for Samsung. To stand out from the pack Samsung has been developing rather its own software Tizen for the past 3 years.
Price Skimming Strategy
To get a high value in the start before competitors catch up, the brand establishes the highest possible price for its newest model. Eventually, the price is being dropped attracting lower-budget segment as well.