Topic > Vertical Integration By Samsung - 1337

In the business world, the term that best describes a style of growth and management control is vertical integration. Vertically integrated companies in a value chain are connected through a common owner. Typically each member of the value chain produces a different component, and the components combine to meet a common need. It contrasts with horizontal integration. Vertical integration has also described management styles that bring large portions of the value chain under the same company, but also into a single company (as in the 1920s, when the Ford River Road Complex began producing much of the own steel instead of purchasing it from suppliers). ). (http://www.samsung.com/global/business/semiconductor/minisite/SSD/global/html/about/whitepaper09.html) In Samsung's case, a phone has three main components of any SSD, which include the NAND flash memory, controller and firmware are created in the same warehouse. Samsung is one of the few manufacturers that makes all of these components in its own warehouses; and of those that do, Samsung has the most experience (with over 6 years as the number one supplier in the pre-installed SSD market). This gives Samsung a significant competitive advantage when it comes to phones. Vertical integration also means Samsung doesn't have to use "off-the-shelf" firmware like many of its competitors use, allowing it to design its own unique performance profile. and perform more robust reliability and bug testing. In fact, customers may notice that Samsung doesn't release many firmware updates. This is a testament to the quality of the original testing procedures and the superiority of the firmware code: fewer problems can be solved better. Another sales key......middle paper......to create content more efficiently. Samsung has devoted a lot of prestige efforts to the unique and smooth design that allows the expansion of the user experience to enhance the feeling of comfort, familiarity and convenience with the product. This unique design developed by Samsung has led to new patents being obtained. In this challenge to continue strengthening its design patents, Samsung has realized that recruiting talent is a must. As a result of these methods, Samsung has filed and registered 2,499 of them with the U.S. Patent Office over the past five years. These patented numbers are three times higher than those of Samsung competitors and this is one of the company's main achievements. Samsung has invested carefully in the design of its products and has established design institutes in seven different countries, including Korea.