Samsung Electronics : How Attractive Is Samsung 's Primary ( Core ) Industry? Conduct An Industry Analysis

Company has established an effective relationship with its stakeholders and treating everyone through diverse techniques. Samsung is periodically meeting the demands of its shareholders where significant judgments are made and problems are discussed. For instance, strengthened compliance management organization has started and operated a healthcare study center. Company has a direct connection with their consumers and employees through making client satisfaction surveys to make a healthier costumer relation service. It also is creating employee surveys that made the company to improve the work shift system to reduce work ours. Samsung has also contributed in government policy formulation, which assisted to make an Energy management system that decreases its energy consumption by 10% (Samsung.com (3), 2015).

Established in 1969, Samsung Electronics is one of the leaders in consumer electronics industry in international scale. The company has generated the record KRW 206,206 billion sales and KRW 25,025 billion operating profit during 2014. During the same period, Samsung recorded a debt ratio of 37.1%, equity ratio of 72.9%, and return on equity ratio of 14.7%. The company employs 320,000 people in 84 countries and localization strategy is used extensively in its global operations. The business is divided into three large segments – consumer electronics, IT & mobile communications and device solutions.

The core competencies of any firm is to satisfy the customer needs and preferences so that it can gain more returns. This is achieved through change of business strategies to those which enable the firm become competitive through exploitation of core competencies in the individual products and services. Such strategies place a firm in a leader position in the industry it operates in relation to competitors as well as the five competition forces. To maximize profitability and boost competitiveness in the mobile phone and Smartphone industry, Apple and Samsung should employ strategies that ensure that they reach more consumers in the emerging markets.

Samsung is a South-Korean company and its headquarters is in Samsung Town, Seoul (Samsung, 2014). Samsung is made up of 80 companies together. At present Samsung branches exists in 61 countries. Samsung is one of the world 's leading manufacturer in the Android mobile (smart) phone industry. Samsung after releasing the smart phones in the name of Samsung galaxy series which started with Galaxy Y basic model. Later Samsung released S series which got overwhelmed response all around the world. On 24 February 2014 Samsung released Galaxy S5 which was an immediate and quick successor after Galaxy S4 the previous model. When designing the Galaxy S5 Samsung worked on the drawbacks of the previous models and improved camera quality, running speed, finger print reader, private mode, dust and water resistance (Andrew, 2014). In this analysis I have researched and proved that Samsung organization used Integrated marketing and communications on basis of their target audiences, message strategy and media choices.

This study seeks to examine the market structure and strategy of Samsung Company analyzing its micro-environmental level as well as SWOT analysis. In this regard, it is worth pointing out that Samsung is a well-established company. It manufactures different electronics products including home appliances and smartphones. It has been on the market since 1969. Its electronics division has 169 subsidiaries and affiliates, which are divided into three to include Consumer Electronics, Information Technology & Mobile Communications, and Device Solutions division (Samsung 2016, 2). In this precept, consumer Electronics focuses on advanced technology, exclusive design and significant offers for presenting new products such as TV, Refrigerator, Air Conditioner, and Medical equipment among other products. Information Technology & Mobile Communications division, on the other hand, produces mobile handset and customer friendly communication products. The Device Solutions in the same dictum division focuses on display pane and semiconductor products. The company has grown globally, and establishes outlets in different parts of the world, including the U.K.

In the modern world of technology, many different companies are attempting to secure their own ground in a particular market. Many companies work in many tech fields & some company focus on software, some on mobile phones, others on television but one of the most recognizable names in the technology field is that of Samsung.

Samsung products range from mobile devices, TV, audio and video, home appliances, cameras, PC and peripherals and print solutions (Samsung 2014). This essay will predominantly look closely at Samsung’s mobile phones market.

Introduction:   With  the  introduction  of  new  Chinese  competitors  in  the  DRAM  market  it  is  necessary  for  Samung  to  access  their  strategy  for  the  future.  Looking  at  past  trends  in  the  DRAM  market,  current  market  situation,  and projections  for the Flash market, the  best option for  Samsung  is  to focus their efforts  on  growing  the  Flash  technology,  while  maintaining  their  DRAM  output.  This  is  the best course of action  because  Samsung’s  customer  loyalty  will  carry  their  market  share  in   the  DRAM  market,  while  they  are  focusing on establishing this type of dominance in the Flash market.

By the end of 2012, Samsung electronics become the largest producer of televisions and mobile phone. In order to achieve the success and the dramatic rise in consumer electronics sector, the company initiated new methods to innovate and create high quality products .

Samsung’s products are based more on the outlook of the smart phone market and their preference to incorporate technology that already has acceptability in the industry. Most of the smart phones of Samsung run on Android which is an open source operating system and is the most widely used mobile phone operating system in the world. Being an open source operating system, the cost incurred by Samsung is reduced significantly. Also, the compatibility with features such as Google store, allows Samsung to compete with Apple’s iTunes without having to incur the cost for developing a similar offering. This helps the company in reducing its cost as well as offer superior product offerings to their consumers. In terms of hardware technology, Samsung has the expertise in developing a number of technological products that include televisions, computers, home appliances and many similar products. The company therefore has a vintage of product development and innovation and has the perception of offering high quality products to the

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.

Samsung Electronics Corp. is one of the world’s major semiconductor manufacturers and is the largest information technology company in the world. SEC manufactures almost all kinds of consumer devices, which include mobile phones, tablets, DVD players, digital TVs, digital still cameras; computers. It also manufactures color monitors, LCD panels, printers; semiconductors such as DRAMs, static RAMs and flash memories. The company, which is the flagship of Samsung Group is also into making display drivers & communication devices ranging from wireless handsets and Smart-phones to networking gear.

Samsung has several competitive strength which has allowed the company to become the leader in many markets (Kotler, Keller 363). Their first strength is utilizing an abundant portion of their revenue towards R&D. Spending 40 billion dollars has empowered Samsung to grow their organization by innovation (Kotler, Keller 363). These innovations provide Samsung with a pioneering advantage. For instance, they were the first company to launch a “cell phone with an MP3 player”, (Kotler, Keller 363). In each of their innovations, Samsung has benefited immensely and helped strengthened the organization. Moreover, this research helps the company to prepare for the future and helps combat the inevitable market decline. R&D assists in forecasting future demand and future needs. They can assess the current trends and make judgments about what is to come. Thus, they can determine what products need to be modified by assessing which products are declining in their life cycle. However, R&D is not the only competitive strength Samsung has. Being the “global leader in making both the components for electronic products and the actual devices sold to consumers” has provided Samsung with a large competitive advantage. Essentially, Samsung is able to control their competitor and shape their competitive environment through the types of components they create and the prices they sell it. Likewise, these components significantly help Samsung. Having complete authority of their supply chain and manufacturing process allows Samsung to maintain lost costs, cater to several needs, make alterations quickly, and swiftly develop products new products (Kotler, Keller 363). This process makes it easier to create modifications and stimulates demand. This is especially helpful when the product market begins to decline. In general, the main competitive advantage here is Samsung is able to monitor the product’s entire processes, which makes it easier to innovate and stimulate growth. Furthermore, considering Samsung’s well established and trusted brand name, any new innovation they launch is much more likely to be accepted because consumers already know, love and trust their brand. Samsung is the triple threat, they are innovators, they have

In my conclusion, I would like to emphasize that SAMSUNG has a quite distinctive way to carry on its business. From the part of visible aspects, it has a different way to build up its image by emphasizing the blue color, while other competitors such as SONY and APPLE focus on the shape of logos to do the same thing. From another aspect of organizational culture, the invisible aspects, we can find its effort to be adjusting well to a society where the organization affects. It tries to contribute its profit to the society by offering an educational service, a welfare service and even some public performances and so on. Although, it has been obvious that such a large co-operation company like SAMSUNG has a responsibility to contribute its profit to make the society better, SAMSUNG`s profit contribution policy is very well-organized so, it can be a very own aspect that SAMSUNG has. Lastly, its managerial structure has an incredibly unique way to communicate to each other and get a new idea from people. It has a very strict hierarchical structure that is carried out by people in the organization all the time, but

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.