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Samsung (From Gallop To Run): Questions & Answers


Q1.How was Samsung able to go from copycat brand to product leader?
There are three main factors that lead product to be cutting edge product. That comes under LEE’S “new management” top to bottom strategy for the entire company. The goal he wanted Samsung to become a premier brand that would dethrone sony as the biggest consumer electronics firm in the world. Factors that used under “new management” are:

1. New Product Development.
2. Product “Test Marketing”.
3. Positioning and commercialization

New Product Development:
Hired a new crop of fresh, young designers who unleashed a torrent of new products.

 Not humdrum, me-too products but sleek, bold and beautiful products targeting high-end users (“lifestyle works of art”) Samsung concentrates on the development of new products, product improvements, product modifications, and new brands through their R&D effort that let them

Product “Test Marketing”:
Every product had to pass the “Wow!” test, if it didn’t get a “Wow!” reaction during market testing, It went back to the design studio

Making Samsung conducts integrated test of product and its entire marketing program-targeting and positioning strategy, advertising, distribution, pricing, branding and packaging, and budget levels

Providing management the information needed to make a final decision about whether to launch the new product or going back to studio.

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Positioning And Commercialization:

As a part of Samsung’s revamped strategy and positioning, along with developing stylish and innovative new products, the company altered distribution to match. Working with specially retailers like best buy and circuit city Samsung was not el cheapo products any more.

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Q2.Is Samsung’s product development process customer centered? Team based? Systematic?

Samsung’s product development process was compiled by all 3 in different aspects and circumstances. They approached customers to determine need and wants then developed team to give those want a face of reality and then developed system to work on it. It is defined below in detail:

Samsung’s use of customer centered product development process:

Samsung revenue (2009) rang up to $117 Billion with profits $8.3 Billion that resulted from consumer satisfaction towards Samsung products.

Samsung’ product had satisfied customers need by providing high-end products such as Samsung Luxia TV’s that has 55 inch size and 49 pounds weight to ease the customer adjusting it wherever they want to move.

Samsung’s use of Team Based product development process:

Samsung hired a new team of young and creative designers who unleashed a
torrent of new products.

Use of WOW reaction test to take out put as consumer thoughts about the product

Used top to bottom strategy to combine customer centered approach with team to bring out an out class an competitive product in market.

Samsung’s use of systematic product development process:
Product development process should be systematic as it helps in creating more innovative ideas, compare to departmentalizes approach.

Q3.Based on PLC, what challenges does Samsung face in managing its high tech products?

After a success of 17years and achieving its goals Samsung LEE admitted that their world leading brand and products may obsolete form market in next 10 years. So as being a reformer he again to retain in market and to lead the world of electronics, designed a new strategy “MABULJUNGJE” a Chinese axiom which means “ Horse That Does Not Stop”

Current Condition:
Now its not a time to b complacent but a time to run Samsung unveiled a $23billion investment plan, to insure that this is the company that develops high tech products.

PLC Stage 1(Product Development):
: Samsung spends a lot of money in investing in the new products because if the new product with the new design failed the “Wow!” test, it needs to be sent back to the design studio for improvement, more cost of developing product is needed. Therefore, the company’s investment cost is very high.

PLC Stage 2 (Product Introduction):
Much money is needed to attract distributors and build their inventories. Advertisements are very important and compulsory for Samsung new product.
With advertisement, will more people recognize about Samsung’s new high-tech products launched with highly cost. PLC Stage 3 (Growth Stage):

Samsung Electronics achieved its lofty goals in less than two decades. Samsung is by far the largest consumer electronics company in the world. It is the world’s largest TV manufacturer and the second-largest cell phone producer.

PLC Stage 4 (Maturity Stage):
Samsung took home 8 prizes at International Design Excellence Awards (IDEA) where entries are judged based on appearance, functionality and idea behind the product. As cell phone industry moves from ‘dumb phones’ to ‘smart phones’ and Samsung aims to double its market share of the higher-end market from 5 to 10 percent.

Samsung also competes strongly in the markets for DVD players, home theatres, digital cameras and camcorders, home appliances, and laser printers because there are many producers out there who offer the same products as Samsung.

PLC Stage 5 (Decline Stage):
Samsung is investing heavily to ensure that it is Samsung itself that develops the “newer high-tech” products instead of other companies like Sony. Despite Samsung’s past success, the company will risk losing market share if it did not completely rebuild its business model

Q4.Will Samsung likely achieve its goals in markets where it does not dominate, such as smart phones? Why or why not?


Samsung can achieve its goals in markets where it does not dominate basically for instance smart phones because they does not claim to know what will replace today’s products as they become obsolete.


Samsung should take this golden opportunity to attract people and win people’s attention that Samsung smart phones are the best smart phones than other companies like Sony, Apples and the other prospective competitors.


Will surely bring out a special and excellent result to the sales of Samsung products. Samsung continue to strive for excellence in creating new high-tech products in order to avoid a loss in market share in the future. Rather, it is investing heavily to ensure.

To cite a latest example
Now Samsung just launched a new smart phone that is Galaxy SIII. This can show that Samsung are striving to attract people’s attention and therefore, win their attraction and heart. Moreover many people are being the loyal user of Samsung Tab and Galaxy S because of its features.

Samsung Dominating Market By MABULJUNGJE:

President of Samsung Electronics America, as a major pillar of mabuljungje, Samsung will capitalize on interactivity which as in mobile smart phones with TVs and TVs with the internet. Through this, Samsung’s Future will bring many products that can communicate to each other as they connect together. With all this, Samsung can definitely get on the headline and successful to attract people attention and therefore, people will be rushing to get the product from every outlet and will be dominating for the market.


In addition, Samsung also take an opportunity to present consumers with flashy hardware features. In the competition between Samsung and Apple, Samsung know that it cannot thrive in the long term by merely offering sharper colors or better sound quality


: Pricing power comes only from unique features and Samsung is putting plenty into discovering the unique features. Samsung, it has announced its intention to unveil a tablet computer and an app store similar to Apple’s that will give Samsung control over that content. Samsung sees apps as the advertising vehicle of the future.


In the future, Samsung will definitely produce many magnificent products that beyond your imagination. Samsung smart phones will continue to launch new design with some special and unique function. Samsung Electronics will generate the fantastic ideas and to innovate new things continuously to convince customers that Samsung can dominate the market such as Galaxy S and Samsung Galaxy Tab that can make the customer buy them.


Samsung would like to consider public policy issues and regulations regarding acquiring or product quality and safety, and product warranties. Samsung also make sure the customers get something that belong to them, for example customers get the warranty of smart phone if the smart phone got any problems and is in the warranty time.


International product and services marketing face special challenges. Samsung must decide how much to standardize or adapt their products and services for whole market in whole world. This makes sure that the products are suitable in every country. Hence, the products which are able to fulfill the needs and wants of consumers can easily be accepted and used by all people.


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Samsung (From Gallop To Run): Questions & Answers. (2016, Mar 09). Retrieved from

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