Samsung, a South Korean multinational conglomerate organization headquartered in Samsung Town, Seoul. The organization comprises numerous subsidiaries with business activities in vast field mostly united under the Samsung brand, such as Samsung Engineering, Samsung Life Insurance, Samsung Heavy Industries, Samsung Electronics and many more. Samsung has powerful influence on South Korea’s cultural, political, economic and media developments, with its affiliates contributing about 20% of the country’s total exports, with revenue equal to 17% of the country’s GDP amount of $1,082 billion. As of year 2017, Samsung is titled as the 6th highest global brand value. Among all the affiliates in the Samsung Group, one of the major company is known as Samsung Electronics Co.Ltd. Samsung electronics Co.Ltd has assembly plants and sales networks over 80 countries with over 300,000 employees. It is the world’s largest information technology company, chipmaker and consumer electronics maker by revenue. As of year 2017, Samsung electronics Co.Ltd stood at market cap of US$372.0 billon (Successstory.com, 2018). This assignment will provide the analysis of Samsung electronics Co.Ltd’s five KPIs characteristics and its contribution of its’s competitive advantage in the market, and recommendations for further improvements on its operations management.
2.0 The 5KPIs Analysis
Samsung Electronics has their own manufacturing plant all around the world which includes Vietnam, China, India, Brazil, Indonesia where cost effectiveness is achieved, thus allowing them to offer affordable prices compared to other brandings. For instance, development of own digital technology for their Samsung mobile phones and mass production of units lower their cost per unit rather than buying from other technology companies (BusinessKorea, 2018). The company also provide cheaper alternatives for consumers with budgets, offering low, medium, to high price products with monitored, comparable and different specs. For example, Samsung mobile is well-known for its premium Galaxy S and Galaxy note series, but the company also offers comparable specs at low prices to suit individual usage such as the Galaxy C and Galaxy J series (Android Authority, 2018).
In Samsung, the company strongly believes in fairness, openness, and win-win cooperation. With supply chains operations of over 2500 suppliers globally, assistance towards suppliers are provided to comply with the ‘Samsung Supplier Code of Conduct’, operating in accordance with relevant local and international standards. The company is continuously upgrading their quality management system to achieve highest standard of quality for their product and services that exceed consumers expectations. Continuous improvements are done through controlling variations in various processes in a stable manner. The company have acquired international quality certification and engages regular quality audits based on ...