Inderscience Publishers

Implementation of product strategy with differentiated standards


This paper examines the relationships between mobile communication standards and product development strategy from a product architecture perspective. A product architecture model is useful in analysing research issues related to mobile phone product development. Samsung Electronics (SE)'s unique organisational capabilities are essential components of its product architecture strategy. This case study suggests several practical implications. First, implementing an effective product strategy requires that organisations are capable of managing different standards and platforms. Organisational networking capabilities enable rapid development and deployment of increasing product volume and variety in a changing global economy. Secondly, efforts to increase market positions within IT industries (the mobile industry in particular) have resulted in the adoption of global standards as an essential priority and as a competitive product positioning strategy. This requires timely implementation of strategic change initiatives (e.g., changes in technology standards). Third, managing product architecture is a strategic process that seeks a necessary balance between: 1) modularity demands for greater market access through rapid network production systems; 2) integrality requirements for greater competitiveness through keeping technological core capabilities in-house. The analysis conducted in this article may be extended to software specialisation processes for advanced as well as emerging markets.

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