134k views
4 votes
Lee Jae-yong, the 50-year-old grandson of the Samsung founder, was educated at Seoul National University, Keio University (in Japan), and Harvard Business School. He wrote a master’s thesis at Keio University on Japan’s struggle to retain its world leadership in manufacturing in the mid-1990s when the country’s fast-growing period was ending. He concluded, "Japan’s troubles were worsened by its manufacturers’ pursuit of scale and market share."1 Is Samsung Electronics’ pursuit of scale and market share to blame for its losing its competitive advantage?

User Sneaker
by
8.2k points

1 Answer

0 votes

Final answer:

Samsung Electronics' pursuit of scale and market share is not the only reason for losing its competitive advantage. Other factors such as technological innovation and customer satisfaction also play a significant role.

Step-by-step explanation:

Lee Jae-yong's pursuit of scale and market share is not solely to blame for Samsung Electronics losing its competitive advantage. While pursuing scale and market share can be beneficial for a company's growth and market position, it is not the only factor that determines competitive advantage. Factors such as technological innovation, quality of products, customer satisfaction, and adaptability to changing market needs also play a significant role in maintaining a competitive advantage.

For example, Samsung Electronics has been successful in various product segments, such as smartphones, televisions, and memory chips. Their success can be attributed to factors such as continuous research and development, investment in new technologies, effective marketing strategies, and a strong focus on customer preferences. However, in recent years, increased competition from other technology giants, changing consumer preferences, and external factors like trade disputes have impacted Samsung's competitive position.

Therefore, while pursuing scale and market share can contribute to a company's success, it is not the sole determinant of competitive advantage. Companies like Samsung need to continuously innovate, focus on product quality, and adapt to market changes to maintain a strong competitive position.

User Ahanusa
by
7.5k points