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Monday, September 3, 2012

Samsung's crisis culture - a driver and a drawback

It's a credo that has driven Samsung  Electronics to become the world's biggest technology firm by revenue - it sells more televisions, smartphones laptop and memory chips than anyone else - and makes the group a must-visit case study for a stream of Chinese firms seeking to tap the secrets of Korean success.


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But, in the wake of last month's damaging US patent ruling, which Samsung has said it will appeal - the Korean group was fined more than $1 billion after a jury found it had copied key features of Apple Inc's iPhone - the group's top-down command structure and decision-making process are blamed for stifling creativity.

What's been good for getting things done quickly, such as making bold decisions on big investments in chips and display screens, may not now best suit a company that needs to shift from being a 'fast follower' - quick to match others' products - to an innovator.

Within Samsung, where some designers feel overlooked and undermined, there are calls for a change of tack.

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