Question

Please answer this question based on Samsung company.

1. What do you think are the core competencies (intangible resources) of Samsung? Provide two examples. ( 200 words)

Answer 1

In my views, the core competencies of Samsung are product innovation and technology leadership. Samsung is known for building every part of its phones in-house, they leverage upon its core competencies of product innovation and cutting-edge technology leadership to facilitate the same. The in-house production even enables cost effectiveness of Samsung products.

Product innovation is basically the production of new products in the market that may be entirely new and unique or may be an improved version of an existing product. Samsung has a team called Product innovation team, which looks after the new concept development and innovation production. They help in maintaining the competitive edge of Samsung in the market. 4 steps are followed in new product development:

• Understand the requirements of consumers
• Ideate
• Concept development
• Concept finalization

Samsung has been a technologically sound player in the smart phone market. Their technological advancement can be attributed to the fact that it produces every part of the smart phone in-house while its competitors like Apple and Nokia buy several parts from third party.