Chinese Business
as a better brand or close the perception gap with Sony, there is a need to adjust its pricing strategy.
Increase the Company¡¯s Economies of Scale
Economies of scale can be achieved by increasing productivity- if existing workforce or resources can produce more with lesser time required, profit will increase and enjoy higher leverage. The other option would to transfer the production of television from the more capital intensive factories (such as its SEMUK in UK) and the least productive plant SETAS in Turkey into China; however it must be cost effective and justifiable in terms of the overall business objectives. Currently, total volume of 6 million color television productions has only 44% being produced oversea, there is still room for expansion into China region.
Comprehensive and regular training programs
In order to survive doing business in a highly technological demanding industry, it is very important that the employees in Samsung are constantly up-grading themselves. The organization must provide the resources and opportunities to motivate their workers, mainly in their skills and management (human resource) component. Old management employees must constantly be motivated to upgrade and reinforce their concept of ¡®moving¡¯ along and ahead of the times. The old thinking of the formidable Japanese brands must be overcome and welcome all its challenges.
Efficient and Effective Work Team
Samsung should always hire the best team of committed employees to lead the development of next-generation technologies and strengthen patent portfolio by securing fundamental technologies to solidify our position as a global leader in IT industry. For Samsung Electronics, continued innovation in technology development is the key to demonstrating our global technology leadership
Good infrastructure of after sales service and support
China has a wide customer base in many different locations, in order to maintain strong customer loyalty and the handle any potential customer post purchase dissonance. Samsung must have a good infrastructure of an informative website dedicated to answer/advice any queries regarding any Samsung products. More importantly the management must plan and strategically located Samsung service centers all over China to meet their ever increasing consumer demand.
Continue to show support for China
Samsung should always strive to establish good working relationship and ¡®guan xi¡¯ with their China counterparts by increasing their investment and social contribution budget in China. Such commitment from Samsung will enhance the working relationship with the authorities and show great sincerity in looking at China¡¯s welfare in terms of knowledge transfer, employment and the overall well being of China¡¯s economy.
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