Week 18

WEEK 18 – LEARNING JOURNAL

Can you think of an organization that has implemented a ‘high risk strategy’ that has resulted in success (why was it high risk at the time and why was it a success – was it good luck or good judgment)?

I think Samsung is an organization that has implemented a ‘high risk strategy’ that has resulted in success. Earlier Samsung was fully involved in producing electronic home appliance and their business was a super successful one. From 2000 AD onwards they entered into cell phone business. During that time Nokia was market leader and there were other competitors as well so it was very tough time for Samsung but as the smart phone came into existence then turning point came for Samsung came. After that their sales increased and became one of the top smart phone producers.   

Decision of entering the market was a very difficult decision for Samsung as they had many successful competitors and the risk involved was very high. If they could not succeed then it would affect their brand image and their entire other products in spite of this risk instead of backing off the investment they stuck to it patiently and started developing their upcoming products. They were far sighted and implemented correct high risk strategy which made them successful in the market. Partly it was a good luck but collectively we can say that it was their good judgment.

Now, do the same for an organization who embarked on a high risk strategy that resulted in some sort of failure (why was it high risk and why did it fail – bad luck or poor judgment?)

I think Sony is an organization that has implemented a ‘high risk strategy’ that resulted in some sort of failure. During late 90’s and early 2000 Sony was the top leader of gaming market. First they launched Playstation1 and after its success they came up with Playstation2. Both these games were very successful and generated profit beyond Sony’s expectation.

After the success of Playstation1 and 2 they thought that Playstation1 and 2 did not have best technology and graphics so they introduced playstation3 featuring all the new technologies in it. The price of Playstation3 was $600 without tax which was very high. They re-designed their product and launched it but they didn’t consider the customer’s expectation so it was an unsuccessful strategy which involved high risk.    

 

References:

  1. Raminder Pal Singh. (2013). Samsung Case Study. Available: t/raminder90/samsung033. Last accessed 27/11/013.

 2. Surabhi Agrawal. (2010). Sony Case Study. Available: http://www.slideshare.net/surabhi786/case-study-analysis-sony. Last accessed 27/11/13.

3. Crapgamer. (2013). Why Sony and the PS3 have failed this generation.. Available: http://n4g.com/user/blogpost/crapgamer/515209. Last accessed 27/11/13.

 4. Forbes. (2013). Samsung’s high end market. Available: http://www.forbes.com/sites/greatspeculations. Last accessed 27/11/013.