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Samsung Went Global

Samsung is an excellent example that shows how a company from peripheral enters the global markets and becomes part of the core

There are several factors for its success

• The Government played a big role in providing initial capital and all other ingredients that company needs to stand on its foot in the domestic market. When the company started producing microwaves, government constructed the barriers for foreign firms to come and sell microwaves in Korea there by giving them protection from direct competition.
• Government also helped in specialized factor creation like building basic physical infrastructure and intellectual infrastructure
• Korean people had the drive to succeed and wanted to build a good future for their kids.
• Samsung management and leadership were very good. They had long term vision about where they wanted to take the company and what opportunities they wanted to pursue based on the resources and skills available in the country
• The Korean people were highly skilled. Even though company gave them low wages, they were highly committed and were very professional and highly motivated
• Samsung took care of the basic needs of their employees by giving then housing, food, medical services, and life time jobs and in return they got their employees life time commitment.
• Samsung also improved on Product Quality and Total Quality Management and Product Innovation
• They anticipated market and demand
• They controlled entire supply chain and distribution channel (input-sourcing-production-marketing)
• Detailed understanding of market --Anticipated declining American demand and upcoming European demand

Other companies can learn the following key lessons: Don’t fear rivalry, invest in innovations. Create long term strategies Anticipate future demands. Create cultural environment and provide training for employees