Four Patterns Of Internationalization: An Analysis Of Samsung's International Business Strategy

The internationalisation process of the firm has been a subject, which has been motive of study for a number of

The business internationalise means a company’s production and business activity are not only confined to one country, but also integrate the different countries’ raw material and labour and technologies to

Therefore, instead of spending more to create more products, Samsung electronics should focus more on enhancing and improving the existing products they already have. For example, Samsung Electronics should develop its weaker products. Furthermore, they should invest more into the researching and developing environmental friendly products that can ensure the sustainability of Samsung Electronics to ensure a more promising future in the ever-changing electronics industry. Continuous investment in R&D of new technologies is also key to Samsung’s future to stay on as the top players of the global electronics industry. This is the best way for Samsung Electronics to have the upper hand against its fellow competitors and stay competitive in the

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

Company Background: Samsung is a South Korean multinational company those beginning its business as a tiny commerce company and right now turning into world largest corporation. The corporate deals with its business in many sectors like advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The corporate was established in 1969 in Suwon, South Korea and notable globally for its electronic merchandise (Kelly, 2011). The corporate is producing many latest technologies, electronic appliances like mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and alternative products. The corporate runs its operations and sales its merchandise

Before entering the international market, it is vital for businesses to consciously understand the language, culture, religion, demographics, political system, legal system, and economy of the foreign country. Failing to recognise these factors may result in business failure or inability to operate in said country. While these factors are important, additionally so are the market, supplies, investors, locations, and competitors in the country of expansion, as they will affect business success. There are multiple methods that businesses can employ in order to expand into the international market; export (both direct and indirect), foreign investment, relocation of production, management contracts and franchising.

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

In order to internationalize operations, a company has to consider the potential of growth and performance in the various regions or countries. It 's majorly enabled by carrying out market

This paper will define global strategy and research the best strategies to use when expanding operations to international markets. Recommendations and conclusions will also be defined for when entering a foreign market, thus expanding operations.

A firm’s initial decision on whether to internationalize or not will be discussed briefly and in a general manner in order to understand the motivation that drives firms abroad in the first place. Factors that combine internationalization theory and franchising as a strategic choice during that process will be discussed in more detail later in this chapter.

International market entry is important because it enables an organization to increase its output and attract new customers. By expanding the customer base and the scale of production, the business will be able to achieve economies of scale. That is, the organization can be able to reduce the average cost per unit of production when the level of output is substantially increased (Stephan and Roin 28). After international expansion, cost advantages and higher profit be obtained through bulk purchasing, enjoying high turnover rate and paying lower interest rates on loans.

Internationalization of the business nowadays apparently became a trend for the organizations to expand their market position and gain the competitive advantage among their contemporaries. The extent and nature of business activities are almost as diverse and comprehensive as the totality of the social and economic interest of a man. Various business activities acknowledged the opportunities that the internationalization may deliver. Through their ability and capacity to expand their business operations, internationalization is highly possible. For most of the time, the high degree of the competition under the umbrella of an industry and the number of competitors that are engaged in the

Samsung vision is to be constantly innovating technologies, products and solutions to inspire communities around the globe. Since its beginning Samsung has grown to be a global information technology leader that manages more than 200 subsidiaries globally. Samsung has its full commitment in innovations, it has adopted a multi-pronged approach that links to: global consortiums that helps resolves important issues, top universities that creates value for the potential future, synergy with equipment and materials vendors, to better control manufacture and quality, and overseas research centers to increase its volume of research and development operations.

In today’s world there is a widespread trend of global expansion, the borders between markets have become more and more diffused. The number of firms expanding abroad is increasing and internationalization has become a necessity, not only to further a firm’s growth, but also to better handle international competition in its home market.

Samsung Electronics was founded in South Korea in 1969. It is part of one of the multibillion corporations in the world. Samsung is one of the largest handset manufactures, which