Samsung Vrio Analysis

Samsung expanded their product base into four different industries; appliances, phones, home entertainment, and cameras, and within these product lines, there are hundreds of variations. This shows weakness in the company, as they are not able to focus on their competition in all production categories. In their cell phone line, Samsung has failed to create their own operating system and software, instead using the Android system like many of its competitors. Samsung is unable to control the quality of the software and loses out on a higher profit margin if they created their own OS and software.

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Samsung, Name that people often heard, the business conglomerate that help the advancement of technology to the current day, their product can be found almost everywhere, home, street, offices, schools, it also can be found inside some peoples pocket. According to the recent report by Kristin Stoller (2017) Samsung has achieved 2nd in “The World's Largest Tech Companies 2017” surpassed by their technology rivals Apple. However, Samsung did not get their ‘Business conglomerate’ title from Information technology, in fact they started as trading company with a budget of 30.000 KRW up to now, they currently know with their huge role in the mobile phone race with their rival Apple. Their growth is proving of successful marketing strategy that leads them to become a business tycoon.

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.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

Samsung Electronics is committed to lead way to a sustainable society. Through company’s green management activities, they are contributing to the prosperity of humanity and the conservation of the natural environment.

Samsung has evolved as a world’s most important brand. It is the probably the most influential leader in the Smartphone industry, second leader as a technological organization and a brand that is ranked among top ten of the world. The unlike perspectives, cutting-edge technologies, innovation, and investments are the method for growth and success.

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Samsung is one of the world's driving creative organization (Makos, 2015). As such, this permits Samsung to have the favorable position in utilizing the force of innovation (Makos, 2015). Samsung can drive development for a business advantage of interest and they have demonstrated it (Makos, 2015). Samsung aim is to overwhelm its rivals, for example, Apple, HTC and Sony by continually being the first to offer the most recent items to the business market (Makos, 2015).

Samsung is widely recognized technology company, and well known for its home theater and consumer electronics, such as its smartphones. At Samsung’s website (2016) under the Values & Philosophy section, the company informs the public that:

Over the years between 2013 and 2011 Samsung has witnessed a rise in its sales. The sale has risen by 39 % in the period with mobile devices accounting for more than 80% of the total sales. Interbrand (2014) states “the brand strength measures the ability of the brand to create loyalty and therefore sustainable demand and profit into the future”. The Samsung brand has b grown over the years to number 8 in Interbrand in 2013 and second in Brand Finance ranking in 2013.The reasons cited for this increase in sales is the ability of Samsung to produce innovative products which appeal to a wide range of consumers. Samsung is building from the foundation in mobile devices laid down by Apple to come up with innovative product that even have features that are not found in iphones or ipads(CNN, 2013). This resulted to a dramatic year-in-year-out increase in Samsung sales with her total revenue exceeding that of Apple in all the three year under study.

Samsung has been in the business for over 70 years, it is a company which is considered to diversify its business ranging from mobile phones to washing machines, TV’s to microwave, all kinds of home appliances to the most modern worldly technology needs of human kind. Samsung is a $160 billion company. Through research, reliability and a talented workforce, Samsung is able to provide technological solutions for our everyday lives. Samsung is known for its TVs however they have penetrated into the mobile phone market. They have come up with creative technology such as the Smart TV and Smart Camera. They continue to invest heavily into their research and development so that they can produce products that are efficient and

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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