Lean Manufacturing and “Blue Ocean” Ideas.
Lean Philosophy.
Samsung, founded in 1938 by Lee Byung-Chull, is an electronics company. The company has its headquarters in South Korea, but it operates globally with assembly plants in more than 80 countries. In the smartphone market, Samsung is the second largest manufacturer and seller of smartphones. This paper will discuss the Lean Philosophy concerning Samsung as a phone manufacturing organisation.
According to an article by Fortunly, Samsung has a market share of 31.13% as of July 2019(Dautovic 2019). However, the sale of its flagship device Samsung S10 sold way less than Samsung had expected (Scott 2019). This loss is due to the overcrowding of the sale of flagship devices (Cecere et al. 2015) from brands such as Apple, Huawei, Oppo, Oneplus, Vivo, and even LG. As a result, the brand introduced a series of budget phones. However, these phones labelled as budget phones in countries such as in the USA, are costly in third world countries, especially those in Africa. Therefore, the company can increase sales in these countries by using the Lean Manufacturing philosophy. In this way, the company can strip off all the unwanted features from the smartphone and keeping those features necessary for customers in those countries. Don't use plagiarised sources.Get your custom essay just from $11/page
The following elements will define the strategy to introduce the idea to the firm’s arrangement.
Arena
The strategy will target third world countries in places such as Africa.
Vehicle.
The company will strip off unnecessary features from flagship devices and sell the customised devices at prices affordable to third world countries.
Differentiator.
The device will have a flagship name, with few necessary flagship features and at an affordable price.
Staging.
The devices can be introduced along with next year’s flagship phone, Samsung S11.
Economic Logic.
Through the elimination of waste, the company will save other manufacturing expenses. Also, the company will create devices that are suitable for most people in third world countries. In this way, it will increase its sales in third world countries significantly and thus, increasing its market share as well as profit.
References.
Cecere, G., Corrocher, N., & Battaglia, R. D. (2015). Innovation and competition in the smartphone industry: Is there a dominant design?. Telecommunications Policy, 39(3-4), 162-175.
- Dautovic, (August 19, 2019), “Smartphone Market Share: Past, Present, and Future” Fortunly, https://fortunly.com/statistics/smartphone-market-share
Scott Scrivens, (July 31, 2019), “Samsung profits dive as Galaxy S10 sales slow down” AndroidPolice, https://www.androidpolice.com/2019/07/31/samsung-q2-financials-weak-galaxy-s10-sales-momentum-contributes-to-56-drop-in-operating-profits/