Essay Samsung Electronics: Company Analysis and Overview

636 Words3 Pages
As I will be joining Samsung Group’s global strategy team in the fall, I have chosen its flagship subsidiary Samsung Electronics, as the company for my analysis. From its beginnings as a subcontractor to a manufacturer to a developer of electronic products, Samsung Electronics has established itself as a leading creator of innovative gadgets. With a diversified geographic presence, Samsung has been able to reduce its exposure to risks associated with a particular market, while allowing proximity to customers that aids in developing close customer relationships and effective marketing. The company’s expansion plans into new product lines and geographic regions have been so far supported by strong brand equity anchored in its focus on…show more content…
This represents the imminent threat that proprietary software may not be made available to 3rd party device manufacturers, such as Samsung. Furthermore, popularity of the Android platform has lowered the smartphone industry’s barriers to entry for hardware manufacturers. In emerging markets, local smartphone makers ZTE, Huawei, Lenovo, and Micromax are ushering in intense competition in the mid-to-low range smartphone market, which hints at increasing commoditization and possibly eventual erosion of Samsung’s brand advantage. Samsung’s mission is to deliver innovative technologies, products, and designs in creative new markets that enrich people’s lives. Positioning itself as a company that brings technologies that are vital for society and epitomizes the further progress of its home country Korea, Samsung is seeking to diversify away from consumer electronics, a market that suffers from declining prices, slim margins, fast product cycles and fickle customers. Eyeing areas that are small but growing fast, capital intensive (to make it difficult for rivals to enter), Samsung's wants to establish itself in the new business areas of solar panels, light-emitting diodes (LEDs), electric-vehicle batteries, and medical devices, as it sets its Vision 2020 targets to be a $400B company in revenue with $50B coming from the new areas by year 2020. In 2013, Samsung underwent organizational

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