Samsung vs Sony: From Benchmarking to Outsmarting



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Code : COM0094

Year :
2005

Industry : Home Appliances and Personal Care Products

Region : South Korea, japan

Teaching Note:Available

Structured Assignment :Available

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Sony and Samsung Sony and the Samsung Group were established within a decade of each other. Sony was established as Tokyo Tsushin Kogyo Totsuko (Tokyo Telecommunications Engineering Corporation) by an electronics engineer, Masaru Ibuka, and a physicist, Akio Morita, in 1946. The company's founding prospectus stated, "We shall focus on technologically sophisticated products that are highly useful in society, regardless of the quantity involved. Moreover, we shall not establish any clear demarcation between electronics andmechanics, but shall createourownunique productsunitingthetwo fields, demonstrating a determination unmatched by other companies."...

Samsung: Building Brands and Surpassing Sony Yun was previously the head of Samsung's operations in Japan. In 1997, as Yun and his management teamprepared to take over the running of Samsung, Koreawas caught in themidst of the Asian financial crisis. The value of the Korean Won reduced by half, interest rates increased and procurement of new loans became difficult. Samsung, with a debt of $10.8 billion, was near bankruptcy...

Samsung: Challenges of the New Leader Graeme Bateman, head of research at Japanese investment bank, Nomura Securities, said, "(Samsung is) no longer making poor equivalents ofSony products. It is making things people want." After surpassing Sony in terms of revenues, Samsung became the world’s biggest consumer electronics company. The company manufactures cutting-edge mobile phones, televisions and memory chips, and is on the look out for new avenues (like video game consoles) for expansion. However, relentless commoditization of hardware and the Chinese 'supercheap' labour continues to put pressure on operating margins...

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