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Samsung Innovation Strategy
Everyone has heard about the company named Samsung and the reason why they have heard of it is because of its innovation strategies. Innovation strategy at Samsung can be described as the way that made them a leading manufacturer in electronic industry as they keep the competitors at bay.

In the present business environment, businesses of whatever size must face and defeat challenges which is posed by accelerated globalization and technological changes. It is not just innovative strategy that matters, but innovations that embed on themselves some strategies that are truly game changing.

The game changing innovation of Samsung encapsulates business models, business processes and manner of positioning themselves vis a vis their competitor. This is what has made them survive all these years.

It is a fact that there is a link between innovation and the economy of a country, the culture of its peoples and those businesses running on it. South Korea, where Samsung originated, is not rich when it comes to natural resources.

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However, people in this place are positive in the belief that one way of effectively keeping up is though innovations. Innovation strategy at Samsung can be attributed to this belief of the people on the ability to succeed in the field of electronics. In the late 90ís Korea was gripped with financial failure as an aftermath of Asian crisis.

In 2001, the industry of information technology was gripped by recession and many huge companies suffer losses and some even collapsed. Samsung electronics emerged unscathed and was able to post substantial amount of revenue. They were also able to earmarked substantial resource for their research and development.

According to many practitioners and business analysts, innovation strategy at Samsung also means proper leadership. This means proper motivation for the working force to withstand that impatience which is exhibited by some organization in the promotion of innovations.

They have dedicated huge amount of investment not only on human resources but also focused on the surfacing role of LED as well as mobile telephony services and products. Innovative strategy at Samsung can be classified as international and domestic upstream and downstream.

Domestic up-streaming and down-streaming is a kind of strategy which internalizes the innovation thorough vertical integration of products and organization.

The focus is on digital convergence of the stream of services and products like TFT/LCD, semi conductors and mobile phone. Domestic down streaming on the other hand is the method of horizontal expansion of the organization on other markets and countries in which it can achieve the multinational status. It can be recalled that in the year 2011, Samsung was the headline of all media channels for overtaking Apple when it comes to sales.

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However, not all people noticed that despite beating Apple on sales, it has also registered a fall on the profit. This means that their innovation strategy was able to create value; it has also gone wrong in appropriating that value. In the observation of analysts, Samsung have made their focused more on the competition and not on the competitive strategies.

Many analysts have suggested that innovation strategy at Samsung in the future must focus on evolving mobile payment system. At the center of any economic growth is a monetized system which will make business and personal transactions faster, timely and efficient. In the next years, electronic payments can substantially replace legacy payments.

This will surely create a value for the convenience of the customers. This value proposition will not only be made but can even be appropriated is the smart phone limitations will be removed through software development which will facilitate a payment system that is contact-less.

If Samsung can focus in this innovative strategy using its smart phone and user-friendly software, they can surely appropriate not only value proposition but the revenue proposition as well.

Innovation strategy at Samsung should also include development of technological platform. The news that highlighted Samsung beating Apple on sales forgot to mention the aspect which can go against Samsung in the long run. This aspect is the Operating System used since the company seems to rely only on platform that is created by a powerful player.

While it can make value for the company within short run, it may not be able to address critical issues in the future. Samsung should develop technological value which will lock in their customers for their present and future mobile devices.

Huge firms also commented that winners on the technological competitions are those who possess an excellent platform strategy as well as an excellent ecosystem as its back up.

Innovation strategy at Samsung must include these two propositions if they intend to secure their place as an organization that is future driven. Electronic manufacturing industries demand very high level of technological advancement. Samsung should have de novo approach when it comes to innovations.

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