Business Strategy

1. Lee Jae-yong, the 46-year-old grandson of the Samsung founder and heir apparent, 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.” Is Samsung Electronics’ pursuit of scale and market share to blame for its losing its competitive advantage?

2. Why is Samsung Electronics encountering problems selling its flagship line of smartphones, the Galaxy? How should it compete against premium phone makers such as Apple and low-cost leaders such as Xiaomi and Micromax?

3. What would you recommend Samsung Electronics would need to do to revive and turn around its fledgling mobile division?