Abstract

To leverage the powerful innovation ecosystem found in Silicon Valley, Samsung has increasingly reoriented itself away from its Korean roots toward Silicon Valley–based subsidiaries such as the Samsung Strategic Innovation Center (SSIC). Like many other non-US-based technology companies, ranging from Nokia to Huawei, Samsung had long maintained a strong research and development presence in the Silicon Valley. Nonetheless, in recent years, Samsung has taken further steps, more than any other foreign company, aiming to become an authentic Silicon Valley entity. Today, Samsung has aspirations of becoming a top-five employer in the San Francisco Bay Area, building research and development centers in Mountain View and San Jose that are collectively half as large as Apple’s gargantuan new headquarters. The question for Samsung Electronics is how to leverage its existing capabilities in Korea and its new capabilities in Silicon Valley to achieve technological breakthroughs to continue to stay ahead of its Chinese competitors.

Learning Objectives

After analyzing the case, students will be able to understand and leverage the following concepts: corporate strategy, business unit strategy and strategic management. They will analyze the positioning of Samsung to retain its popularity, its growth strategies in the new emerging markets, and assess its approaches to and performance of transforming into a Silicon Valley entity. The tensions between Head Office and the subsidiary are also highlighted.