week 17

1. 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 judgement)?

In my view Samsung is the company which has implemented a ‘high risk strategy’. Until 2000 AD the full attention of Samsung was in the home appliance segment. But from 2000 AD Samsung entered into the cell phone segment. In that time Nokia was the market leader and Motorola, Sony Ericsson were the competitors’. So, Samsung couldn’t do well in the starting time. From mid 2000 the era of smart phone came to market and it was the turning point for Samsung. Its sales reached up to 50 million in one quarter only. Now Samsung is the number one mobile market of United States of America. In global scenario Samsung shares 35% of mobile market.  (www.samsung.com)

At first when they entered in the mobile phone market it was very risky as they were not related to that business. But their long sight vision and correct strategy made this business segment massive revenue generator. (www.telegraph.co.uk)

2. 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 has faced a huge loss from the implementation of high risk strategy. From late 90’s to 2000 AD Sony was the leader of the gaming segment in market with its electrifying gaming device Playstation1 and Playstation 2. Company generated huge revenue from this two products. But after that company came with Playstation 3 with many excellent features. Bluetooth, Wi-Fi, high graphic, flash drive ports etc were the features of the Playstation 3. But because of their high risk strategy and making the price of product very high made the product a failure in market. The price of Playstation 3 was marked $600+tax which was way expensive than Playstation 1 & 2. So, their wrong strategy of pricing and wrong strategy of positioning of product made them to taste the failure. (www.us.playstation.com)

References:

(n.d.). Retrieved from www.samsung.com: http://www.samsung.com/us/aboutsamsung/

(n.d.). Retrieved from www.telegraph.co.uk: http://www.telegraph.co.uk/finance/2830214/High-risk-strategy-can-bring-right-results.html

(n.d.). Retrieved from www.us.playstation.com: http://us.playstation.com/ps3/playstation-move/product-information/