The paper 'The Global Production Network of Samsung Smartphone" is a perfect example of a business case study. The accelerating process of globalization in the economic arena has greatly influenced the structure of the global economic setup towards a much integrated and functionally interdependent through international trade. In this interconnection of the world systems, a brand new form of economic setup has cropped up (Coe et al. , 2012). The global production network is a concept that brings together a number of economic agents which include firms, worker unions, the consumer as well as the nongovernmental organizations, in the cross-border production of goods and services (Christiansen 2015).
The national, as well as the regional development in such an integrated economy, can no longer be analyzed on the basis of the territorial boundaries of the countries under consideration. The GPN instead are platforms through which actors in the different national and regional arenas can cooperate and compete for a sizeable share of the market, and the receipt of valuable knowledge through their exchange of goods and services (Lee, 2003). This paper aims at developing an analysis of the global production networks of the Smartphone as a product that describes the interconnection of the global economy’ s economic development.
It also looks the various forms of labor that go into creating the Smartphone, and how this work is globally distributed, how is the value captured at each stage of production distributed along with the network and on what institutional arrangements that explain the structure of this GPN. The paper will specifically look at an analysis of Samsung’ s management of its global production network of their Samsung Smartphone. The Global Production Network (GPN) of Samsung Smartphone. At the onset of the fierce competition and the ever dynamic demand in the phone market, any manufacturing firm must make sure that they employ all their efforts in improving the way in which they carry out their production activities (Riley, 2007).
The main key to their corporate success doesn’ t only depend on the technological innovations, but how the organization and management of production network are done (Christiansen 2015). Most of the smartphones have been produced by its Asian production network. As part of its production network, the production of Samsung smartphones is made a reality by an existing network of suppliers of components and parts.
The heart of the production of Samsung smartphones is its production line back at home in South Korea (Varag, 2014). It has retained the production of most parts of their smartphone in their native South Korea situated specifically in Gyeongsang province (Hagel. , et al 2016). Unlike some of its competitors, the company is in a unique position to produce most of the components of the smartphone starting from the screens, chips, software and the assembly, rather than sourcing them from some other third parties.
All these components are however not produced in Korea, but in their conglomerates that are situated in Korea, Malaysia and China (Hagel. , et al. 2016). The Samsung strategy of the production of smartphone components is making efficient its operations by situating their manufacturing facilities and research and development in the same plant (Varag, 2014). The important components that include the processors the screens are however are developed in the Samsung manufacturing factories and the research centers in China as well as the factories in China that produce in mass (Grobart 2013).
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