Introduction: Case study summary of Samsung Electronics
Samsung Electronics is a multinational company that produces electronics and IT solutions. The company was founded in 1969 and is a major subsidiary of Samsung Electronics Group. The company has its operations in more than 60 countries with more than 350000 employees. The headquarters of Samsung Electronics is in Suwon in South Korea. The first pioneer products of Samsung Electronics were electrical appliances and electronics. Some of the pioneer products include washing machines, refrigerators, and technology. However, in the recent past, the company has expanded its operations including a variety of more advanced products like dynamic random access memory, telecommunication solutions, semiconductors, computers, and mobile phones to their existing operations.
General overview, external environment, current strategies and objectives of Samsung Electronics
Samsung Electronics is famous for acquiring other business entities. Some of its successful acquisitions include AST Research, Rollei watchmaker, FUBU clothing and apparel, and Fokker Dutch aircraft. In the modern world, Samsung Electronics is among the leading providers of electronics and IT solutions (Smith-Ditizio & Smith, 2018). For example, the company was the best manufacturer of mobile phones in 2009 after the thrashing Nokia (Le & Park, 2017). The company has gone through numerous challenges to achieve all this success. Samsung Electronics is in a good position that enables it to face challenges and competition from competitors like Apple (Le & Park, 2017). Besides, the company is financially strong to maintain its standards in the market, that the competitors cannot displace it easily.
A closer look at the external environments of the company shows it is stable economically, and it has what it takes to occupy new niches in the market as well as maintaining current market share. The current generation is obsessed and has a strong passion for new innovative technology; and this is an advantage to Samsung Electronics since it is a leading company with a milestone of new innovative technology (Sue, 2017). The company maintains a people-centered corporate culture that respects and values clients, employees as well as the environment.
Samsung Electronics pledges to manufacture and deliver products and services of high quality to enhance the convenience and promote a smarter lifestyle for its consumers across the world (Smith-Ditizio & Smith, 2018). The company is dedicated to making the world better through its groundbreaking innovations and value creation. The company has a plan of achieving an annual sale of $400 billion by 2020, and at the same time fighting to place its overall brand value in the top five (Le & Park, 2017). As a result, the company has made three strategic pillars part of its culture, management, and business operation: ‘Partnership,’ ‘Creativity,’ and ‘Great People.’
Samsung Electronics in the next five years
Samsung Electronics is a very strong and well-known corporation in the world, especially under mobile phones. The profitable product lines and segments have increased revenue and profits of the company (Wu & Vasquez-Parraga, 2016). Moreover, the resources of the company include acquisitions and physical assets besides the revenues. Samsung Electronics has a successful past: for example, it was once the world’s information technology company. Due to the successful past (a sign of a good name in the market) and financial strength, the company is bound to achieve more and maintain its name in the market (Wu & Vasquez-Parraga, 2016). The future capabilities and core competencies of Samsung Electronics include strong infrastructure, high brand value, a wide range of products, financial strength, vibrant management, technological innovation, competent employees, good salaries, higher yields and investment in research and development besides other more.
Strategies I would recommend to Samsung Electronics
Samsung Electronics is a big company, but some challenges threaten its existence. Cheap products manufactured by Chinese companies and competitors like Apple are the biggest threats to Samsung Electronics (Smith-Ditizio & Smith, 2018). Cheap Chinese products seem to be the biggest threat to the company. As a result, the company needs to come up with a strategy to address this issue. If I were the CEO of Samsung Electronics, I would recommend the production of low-cost products with fair if not high quality. Moreover, the company could invest more in research and development to help them manufacture cheap but good quality products (Wu, Y.-C., & Vasquez-Parraga, A. Z. (October 21, 2016). The strategies might help them compete more effectively in Asia and the rest of the world. The company can also utilize opportunities at its disposal like opening more stores and branches and introducing air-condition product category worldwide. The strategy is likely to increase profitability and reduce competition from cheap Chinese products as well as competitors like Apple, Xiaomi, and Motorola.
Competitive strategies used by Samsung Electronics’ main competitors
Samsung is a great company, but they are slow when it comes to adapting to changes. Besides the company also has a weak “after purchase” support. The two are potential threats to its dominance. Therefore, the company needs to be quick and more agile when it comes to reacting to competitive challenges like its top competitors (Sue, 2017). Competitors of Samsung Electronics releases its product to the market when they are fully developed. Samsung Electronics tend to “beta” test new products before they are developed fully. In such a situation, early buyers tend to acquire products with firmware/software with “bugs” and “battery” issues (Sue, 2017). Early versions of Gear3 are a perfect example of products that had software issues that latter affected battery life. The battery issue became a problem nearly a year after release, and at that time, the warranty was over. Later the company released a new version of the product with better software and battery. The company needs to ensure the products are fully developed before releasing them to the market unless they want to lose the customer and the big name.
Samsung Electronics is among the top multinationals in the industry of electronics. The company was founded in 1969, and since then, it has grown to be a leader in technology use, innovation, and product portfolio. The company is capable of expanding its strength and market in innovation, but it is challenged by competition from cheap Chinese products and other competitors like Apple and Motorola. Besides, the company is not very aggressive to changes and has recorded problems from some of their products. Generally, the company is still stable, and when they correct the mistakes and implement new strategies, they will maintain their name and grow even more prominent.
Le, H. V., & Park, H. W. (January 01, 2017). A comparative study on iPhone 6 Plus and Samsung Galaxy Note 4 from Vietnamese consumer perception. Asia Pacific Journal of Business Review, 2, 1, 53-68.
Smith-Ditizio, A. A., & Smith, A. D. (January 01, 2018). Samsung Company and an Analysis of Supplier-Side Supply Chain Management and IT Applications.
Sue, A. G. (December 13, 2017). Samsung v. Apple, Life Technologies v. Promega, SCA Hygiene Products v. First Quality Baby Products, TC Heartland v. Kraft, Impression Products v. Lexmark, and Sandoz v. Amgen: The U.S. Supreme Court Decides Six Patent Cases in 2016-17, 17 J. Marshall Rev. Intell. Prop. L. 162 (2017). The John Marshall Review of Intellectual Property Law, 17, 2.)Wu, Y.-C., & Vasquez-Parraga, A. Z. (October 21, 2016). Fitting Consumer Needs to Perceived Product Value: The Example of Apple versus Samsung Products. Atlantic Marketing Journal, 5, 2.)
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