Samsung Case Study

Samsung served as the manufacturing industry and international company analyzed. Samsung has been in business for over 70 years and manufactures products for diverse markets, including: digital media, high -tech electronics, home appliances, information technology and telecommunication. Samsung's motto is to "inspire the world and create the future" by leveraging three key strengths: new technology, innovative products and creative solutions.

In its early growth period Samsung adopts the strategic of a “budget” brand producer in most consumer electronics markets as it could not compete with high technological products and better quality consumer’s item

For any business to successfully add value they either do so through lower costs or superior benefits to the consumer by offering product differentiation (Singh 2012). Samsung was a late starter into the smart phone industry, while, this has not prevented them from successfully positioning their product at the forefront against those offered by their competition such as Apple. Gary Armstrong (2011) defines a product’s position as “the complex set of perceptions, impressions and feelings that consumers

The company based its success on 3 pillars of Strategy in the field of Quality, Synergy and Internationalization upon the New Management under the leadership of Lee Kun-Hee. The new management was focused on achieving Quality over Quantity, Low cost Products to Differentiation and Cheap Wages to pioneers in Technology and Branding . The key areas where the company focused were:

Today Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. It is now globally focused and responsive to the needs of each market, and more committed than ever to true innovation. The group’s three core business sectors are electronics, finance and trade and services.

A strategy is method by which a company is run in order to generate revenue. Whilst investigating strategies by which companies run, Samsung Electronics Company (SEC) can be considered for a case study due to its remarkable market share, brand reputation and global positioning. Samsung Electronics Company (SEC), founded in 1969 as a member of the Samsung Group, is the largest manufacturer in Korea, with a sales turnover of $23.9 billion in 1997, and accounting for 32.8 percent of the total output of the electronics industry. In investment, product development, marketing, and technology development, SEC has played the leading role in expanding the frontier of Korea 's electronics industry. The case study can be enlightening to many

Established in 1938, Samsung is one of the business pioneers in a huge number of ventures from power generation through to advanced mobile phones (Kovach, 2013). Each of their specialty units hold fast to a similar vision of turning into the favored provider of items or potentially administrations to their customers, yet the strategies used to accomplish this vision are custom-made to suit the particular market concentrate, in this way showing the flexibility of the organization.

Samsung portrayed a very interesting and impressive success story in every aspect of development. Although they were hit hard by financial crisis in 2009, Samsung survived the ordeal with their impressive financial performance. The astonishing part of their achievement is mostly guided by internal management capability, positive aligned culture and belief system that empowering human capital is the foundation in building and

The challenge being addressed by the organization is the ability to convince consumers to remain permanent users of Samsung products (Milkman, 2008). Despite the efforts to use advertisement as a form of communication, most of the consumers tend to buy only specific goods and not others. This makes it a problem for the organization as some for the goods remain a stale stock for a longer period. The consumer behavior portrayed cannot be used to judge how competitive some of their products can remain in the market.

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.

The success of an organisation includes the use of unique strategies and effective decision-making to promote the business effectively which increased the growth of the company to the industry and economy. Through competition, companies have gained advantages to outgrow their product by using strategic plans and critical decision-making which leads to attracting as many consumers as possible than their competitors. Organisations compute the success of the company in unique ways and varies from different industry to another. In order to gain goal development, a company must conduct research studies and plans to achieve a unique set of tactics in where no other company has done or gone through. This means that competitive advantage is highly needed in a certain business in order to put it in a beneficial or superior business position. There are huge possibilities a company could interact wisely with the consumers. Samsung has demonstrated low price ranges, new features, and producing sustainable products that could achieve competitive advantages. Competitive advantage is developed in the company of Samsung mainly from the demands of the new generation of consumers to sustain their everyday needs and activities which help improves their everyday lives.

(Exhibit 1 shows the growth in revenues and profits between 1997 and 2002.) By 2003, Samsung was the most widely held stock among all emerging market companies due in part to relatively transparent disclosure practices. Over half of Samsung shares were held outside Korea, and the stock price had increased tenfold between 1997 and 2002. The company had a market capitalization of $41 billion in 2002, making it the largest Asian electronics company by this measure. SEC Chairman Kun Hee Lee led the transformation. In 1993, Lee launched the “new management initiative,” which set out to remake Samsung as a global business leader. It was the changes that followed from this initiative that saved the company during the Asian financial crisis and streamlined the company into a profitable enterprise. Throughout the 1990s, Lee demanded the rethinking of key fundamentals and set the stage for long-term commitment to investment in innovative, premium products and brand value. Following the chairman’s new management initiative and the appointment of Yun Jong Yong as vice chairman in 1997, the company pursued a bold combination of strategies, many of which seemingly contradicted conventional wisdom.

Samsung, one of the largest multi-billion dollar corporations in the world is analysed for the purpose of this essay. Samsung group is South Korean company that was founded by Lee Byung Chull in 1938 as trading company. Now, Samsung has grown up and producing about one fifth of the total country’s export. Samsung main business is in electronics, construction, heavy industry, defence industries. Other major business of Samsung is including entertainment and advertising. As a profit organisation, Samsung vision and mission is to create new market efficiently through developing innovative technology and be trusted market leader to enrich people’s

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

Samsung is one of the world’s premium electronics manufactures. The estimated value of Samsung brand had risen from US$6.37 billion in 2001 to US$10.85 billion in 2003. A major factor behind this impressive growth had been Samsung’s effort to redefine itself as a vendor of cutting-edge, “gee-whiz” consumer technology. Samsung believed that repositioning the brand is a vital to the company’s future success.