Design Strategy at

Samsung Electronics:
Becoming a Top Tier
Company
Anirban Mohanty 14P127
Aniruddha Deshpande 15P006
Himanshu Shekher 15P023
Jayram Palnitkar 15P025
Parul Jain 15P037

THE KOREAN MIRACLE

In 2005, S Korea was one of most technologically
advanced countries
Ranked first in broadband access, with over 80% of
households wired with high speed internet access
Described as a sophisticated laboratory for consumer
electronics testing which suited companies like Samsung

SAMSUNG ELECTRONICS
Samsung Electronics Company (SEC) had its beginnings in
Samsung Sanyo and Samsung NEC as units of Samsung,
which originated as a trading company founded in 1938
The new management policy Change everything but your
family
This aimed at quality first, without compromises
Strategic importance was given to design along with R&D

 In 1995, Samsung began mass-production of LCD displays for

both computers and TV sets
It used the advantage of vertical integration of electronics
hardware (from chips to monitors)

The First Design Revolution

In 1996, Samsung announced Year of Design Revolution
design would be Samsungs strategic edge & priority for
investment
Company recruited designers worldwide and strengthened
training programs for them

IMF crisis
IMF crisis bought Samsung to brink of bankruptcy
As part of SECs recovery, business units were decentralized
under global business management (GBM) system
Within a few years, company was sustaining sharp upward
course on all fronts

Design A Priority
1999 Designers asked for management audit to
cope up with the demand of decentralizing design
function
2001 Designers moved CDC near to Samsung
HQ
2004 Won awards in design category
2005 Milan design centre was opened which
later marked a key role in developing many
innovative designs taking into consideration the
emotional usability
1. Create remarkable designs 2. Recruit world class
2004 Samsung made designers
a vision of developing
world-class premium products
and laid down the
3. Create co-operative
4. Reinforce molding
plan
action
Till
nowof
there
was less focus on creating
harmony between the
environment
technology
teams, but the vision was mainly driven by creating the best
designs and freeing themselves from the legacy of imitating
competitors

Different businesses of
Samsung

Digital Media Business TVs, DVD, VCRs

Telecommunication
Mobile Phones

Network

Business

Digital Appliance Business Refrigerators, Air

conditioners, Washing Machines, Microwave
Ovens, Vacuum Cleaners
Semiconductor Business DRAM, SRAM, Flash,
MCP
LCD Business Computer Monitors, TFTs ,
notebook PCs, LCD TVs

Structure
R & D : One of the strongest organizations in the
world based on their research capabilities; 1641
US filed patents (2005)
Engineering : Employees innovation was
capped at reducing costs while product ideas
principally came from the Designers
Manufacturing : Samsung boasted of an agile
manufacturing line that could meet any
unexpected consumer demands
Marketing : nearly Two decades after inception,
Samsung launched its global marketing strategy
of promoting its electronics division; Samsung
DigitAll Everyones Invited
Design : the pivot on which the entire business
rested

Design at Samsung
The Corporate
Design Centre
since its formation
in 2001 has
expanded to
London, Los
Angeles, Shanghai,
Delhi, Tokyo, and
Milan. The
objective is to
satisfy both the
aesthetic and
functional needs of
Design Education
the consumer
Design Membership Program demands.
1993
Samsung Art & Design Institute
1995

Getting Close to the

Consumer: Design
Research
Marketing research Vs Design research
Visited homes of consumers; observed actual use of
products
Helped in designing products based on consumer
preference in different geographies
Samsung could planned 5-10 years in advance
Three factors identified for design inspiration:
Market trend
Competitors
Technology

User Centred Design Lab

Simulated user friendly environment
Creation of user friendly forms & features

International Presence
Aim: To get inputs on design from international
consumers and understand lifestyle & cultural
insights of consumers
1992: Design centre in Tokyo & Germany
2000: Global Design Centres in San Francisco &
London
2001: Lab in Los Angeles for mobile designs
2004: Shanghai & China
2005: Milan

Issues and Challenges

Lack of corporate identity
Very few creative designers
Interdivisional synergy
Television technology was in mature stage; no
distinction from competitors
Introducing innovations in electronic goods

Design Innovations for

Distinction
Launched L7, a large screen TV on a slim vertical
pedestal
Introduced a shallow V-shape at the bottom of the
screen
Buddha Spot- A circular spot introduced in TVs
The Bordeaux Project
Appealing to the emotional purchase pattern of
buyer
Thin & glossy in an organic design
TV seemed to be made of one piece

Marketing redefining
product
Trying to shape the consumer choice Consumers
should think of the TV as well not just the
content
TV as a decorative item as a matter of emotional
pride
Engineers asked to create an unconventional
design - challenging the norms back of the TV is
important
In terms of design - they tried to achieve what
was perceived as impossible
Thickness, speaker holes molding, etc

Part of elegant lifestyle

Some compromises(design team) and some innovations
from the engineering team = brand new product
Bringing together all teams engineering, design,
marketing, sales, etc with the design sense of ownership
The way your product looks and feels defines your
brand enhances your brand
Technology and style are all included in the way your
product looks
Focus group discussions - finalize on the product features
Idea bank adding the idea whenever tried first
Project bank all ideas related to one project
accumulated effort and knowledge
Collaborated efforts can ensure we get the best designs

Creating unconventional
products
Small phone with big screen for multimedia, big
keypads
Ergonomic handsets for the elderly, large buttons,
emergency calling button
Wow factor to differentiate Samsung phones
landscape mode conduct Design mockups,
reliability tests
Emotional quality innovation, emotional
messages, empathetic design, etc articulation of
the new design strategy
The vision should permeate into the minds of the
designers
Memo attempt to create a standard operating

Thank You !