The Market Qualifiers And Order Winner Marketing Essay

Samsung as one of the leading companies for the electronic products has their business covered almost all over the world, their success are mainly based on the innovative products with a relatively low price. Although they are not in the leading position in the photographic manufacturing industry, their products with the innovative design and relatively low prices can still help them hold a certain range of customers. This report will give a view of how do Samsung manage their supply chain while find themselves a proper position in the digital camera manufacturing industry.

Based on the four main objectives for customer value —- quality, cost, service and lead time, the customer value of Samsung can be summarized as follow: Customers who bought the Samsung cameras would normally perceive that they were delivered for a better product and service than other brands on the same price.

To sum up, the nature of customer value in the digital camera industry is somehow to provide the innovative products while cut the cost down. However, since the product life cycle in this industry is getting shorter, companies should do more effort to balance the cost of developing new technology and the consistency of turning profit. Samsung’s success is a good example of value position and the caution of their customer value.

Pressure on the supply chain

In the high-tech industry, operational performance is tightly connected to the supply chain performance. Product availability, lead time and cost as three major factors that define the profitability of a product line are also impacted by supply chain performance to a large extent. [3] 

In the case of Samsung, who do not outsource their manufacturing part, instead, they have created their own “cell-based” manufacturing system that doubles the production for their entire product portfolio. [4] Thus, they have less pressure on the product availability comparing to their competitors. However, being treated differently to the LCD products, the production of Samsung digital cameras is not invested a lot on the part of technology development. They simply buy the technology from other companies and add some functions as well as the designs. Therefore, the time to market has become the major pressure within the Samsung supply chain.

Samsung as the world’s leading electronic production company have successfully managed their marketing strategy, by setting themselves into a proper value position and understanding the needs from their target customers. Therefore, a proper service could be delivered into the certain target groups which attributes to their huge profit margins even in period of the global economic crisis. However, the pressure on their supply chain, especially in the lead time sector has brought them some barriers that needed to be conquered. Nevertheless, the outstanding performance of Samsung is still reflecting their successful marketing strategy as well as the suitable control of their supply chain.