Samsung Electronics: Innovation and Design Strategy Case Solution & Answer

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This Case is about DESIGN, MARKETING, OPERATIONS MANAGEMENT, PRODUCT DEVELOPMENT, TECHNOLOGY

PUBLICATION DATE: April 01, 2009 PRODUCT #: HKU825-HCB-ENG
Samsung Electronics Innovation and Design Strategy case solution

In January 2008, Samsung Electronics won design engineering awards and 32 invention at the Consumer Electronics Show, the biggest display of its type on the planet. Samsung Electronics’ management considered the awards were a sanction (or “vindication”) of the business’s investment in product design and invention. On the other hand, the firm found its competitive advantage falling rapidly as a result of commoditization of research and development (“R&D”), product design and innovation processes. This is a management strategy case that investigates innovation strategies, merchandise design and strategic planning in a changing competitive landscape. While the investment in R&D and the product design has satisfied that Samsung Electronics with its dominant perception, such brand market position and premium dominance may not be sustainable in the long run, especially now that competitors are achieving higher profitability with lesser investments in R&D per product. The case also discusses such issues as product design philosophies, localization of products, invention strategies, merchandise design outsourcing for consumer electronics products.