Essays on The Global Production Network of Samsung Galaxy S3 Smartphone Assignment

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The paper "The Global Production Network of Samsung Galaxy S3 Smartphone" is a perfect example of a management assignment. Samsung Electric Industries, South Korean Company, released its first Android Smartphone in 2009 as well as the launching of its first Android tablet in 2010. Today, the company has developed into one of the biggest players in the production of Smartphone in the global market of mobile phones. Samsung Galaxy S3 is the third edition of its leading model that the South Korean Company continues to launch on the fast-paced Android Smartphone global market (Stieglitz 2013).

This essay analyzes the Global Production Network (GPN) of the Company’ s Android-based Samsung Galaxy S3 Smartphone. Global production networks (GPN) are platforms used by organizations or actors in various regional and national economies practice to sustainably compete and cooperate in order to achieve a greater share of creating, developing and capturing value in the form of geographically dispersed economic interventions or activities. In GPN theory, the dynamic idea of the cost-capability ratio is applied to describe its optimization process that enables a number of firms involved in global production networks to gain more advantage of firm-specific capabilities as well as the value capture over time.

Therefore, the underlying argument in this theory is that although cost reduction should be regarded as significant capitalist dynamic influencing lead firms to involve in outsourcing or subcontracting to becoming independent suppliers within the home and at the international level, the cost is perceived to be a relative concept. This means that it should be understood in together with the so-called “ act-specific capabilities” of such lead firms, and their respective suppliers so as to ultimately achieve a complete view or conclusion of its actual causal influence on both the formulation and development of their global production networks.

In so doing, the dynamics of applying the cost-capability ration will be crucial in understanding the rationale for outsourcing certain value activities to the independent supplier as often practised by global lead firms (Yeung & Coe, 2015). The various forms of labour that go into creating the Samsung Galaxy S3 Smartphone product and how is this work globally distributed? Samsung which is a South Korean conglomerate has 350,000 employees across the world.

Generally, the pre-orders of Samsung Galaxy in particular S3 now total to 9 million, which huge. The 9 million orders position the Galaxy S3 as the fastest-selling gadget. Basically, the orders come through network carriers worldwide and made based on the customer pre-orders, upgrades as well as anticipated demand (Anthony 2012). Big seller: Samsung has had 9 million pre-orders for the S3 - but you may be waiting for the blue mode Given the reports that Samsung Galaxy SIII gets pre-orders for 9 million units, it means that the handset is the fastest-selling gadget.

Thus, the 9 million figures are higher than the 8 million units pre-ordered for Microsoft Kinect that is sold within a 60 day period. Now, it is important to determine how many people or workers are used to making the huge quantities of the Samsung Galaxy S3 Smartphone-the eagerly awaited handset. The research by ExtremeTech from some releases and news stories show that it takes 75,000 workers to create the 9 million units of the Samsung Galaxy S3 as well as the extra millions more made in future sales.

In order to make the gadget, 60 Samsung production lines produce 5 million of Samsung Galaxy S 3 phones cost labour of 38,400 workers. When this figure is doubled, a total of 76,800 factory workers are used. However, it should be understood that the various parts used in making the Samsung Galaxy S3 gadget ranging from the OLED screen to quad-core Exynos processor as well as RAM and NAND flash, are entirely made in-house by Samsung. By considering the manufacturing process of its mobile devices in particular-Galaxy S3 Smartphone, it is apparent that Samsung is higher with overhead that Apple.

The 76, 800 works making the gadget represents about 10% of their total payroll, which is more than the entire payroll of Google (Alan 2012).

Bibliography

Alan, F., 2012, ‘Samsung Galaxy S III made by 75,000 workers; phone is the fastest selling gadget of all-time’, ExtremeTech, Retrieved April 9, 2016 from,

Anthony, S., 2012, ‘How many people does it take to make 9 million Samsung Galaxy S3 Smartphones?’ Retrieved April 9, 2016 from,

Carlon, K., 2013, Android for Beginners: Galaxy S3 Camera – Beyond Auto Mode, AndroidPIT International.

Ernst, D & Kim, L., 2001, Global Production Networks: Knowledge Diffusion and Local Capability Formation, Nelson & Winter Conference, Denmark.

Kelion, L., 2013, ‘Samsung: Is the Smartphone-maker in deep water?’ Retrieved April 9, 2016 from,

Martin, C., 2013, Samsung Galaxy S3 review-how does the Android phone that changed everything stack up now? PCAdvisor.

Nathan, D & Sarkar, S., 2013, Capturing the Gains: Economic Innovations and Upgrading in Global Production Networks, The University of Manchester, in UK.

Samsung Electronics Sustainability Report, 2013, ‘Inspire the World Create the Future: creating a new future that positively impacts the entire global community’, Retrieved April 9, 2016 from,

Stieglitz, L., 2013, ‘Review Samsung Galaxy S3 (GT-I9300) Smartphone’, Smartphone Android, Retrieved April 10, 2016 from,

Yeung, W.H & Coe, M.N., 2015, ‘Towards a dynamic theory of global production networks’, Economic Geography, Vol.91, No.1, pp. 1-23.

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