Answer to Question #214249 in Management for Kathie

Question

Discuss how Samsung’s acquisitions contributed to maintaining the company’s strategic intent and achieving competitiveness. 

Answer 1

How Samsung’s Acquisitions Contributed To Maintaining the Company’s Strategic Intent and Achieving Competitiveness.

·The first step in achieving global competitiveness is to layer advantages, which entails a constant expansion of competitive advantage, ranging from low wage costs to adding worldwide brands. Samsung Electronics Company (SEC) has been using this strategy for the past three decades. Due to a lack of resources, the SEC established an early strategic growth platform substantially different from the present one. SEC expanded its production system in reverse order over time. By entering a market space where it can compete on technological capabilities, the SEC creates layers of benefits.

·The second strategy for competitive innovation is to look for loose bricks by staking out the under-defended territory of larger, more powerful competitors and exploiting the benefits of surprise. Because it had joint venture and licensing agreements with multiple competitors, SEC had to go through a series of reverse engineering steps to obtain the requisite technologies for its goods. The third strategy for competitive innovation is to alter the terms of engagement by refusing to accept the front-industry runners and segment boundaries. When the SEC entered the television market, it was already in a state of decline, which may have been interpreted as a diminishing market in the classic sense.

·Collaboration is the final route to competitive innovation, and it is used to calibrate competitor strengths and weaknesses. With limited technology and experience, SEC entered the consumer electronics sector. SEC was able to negotiate license deals with international businesses that owed patents and manufacturing rights, such as Toshiba and Philips, and reverse-engineered and integrated competitor technology and know-how.