Value Chain Of Samsung

There is need to consider several things when we talk about operations and future of a business. Expanded through a minor export business in Daegu, Korea, Samsung has emerged as one of the prominent corporations in electronics around the globe (Samsung, 2015). Samsung has major emphasis on electronic appliances and digital media, memory, system integration, and semiconductors. At present, Samsung has always created innovation through top quality practices and products that are accepted around the global. This paper will present SWOT analysis and Porter model of five forces for Samsung and propose the opportunities to increase profitability and competitiveness. This paper also comprises a

Samsung started from an export business in Taegu, Korea. Today they have became one of the world's largest electronic companies. Samsung is specialised in digital appliances and media, semiconductors, memory, and system integration. Samsung's ingenious and high quality products and developments today is globally recognised. However, their competitor, Apple is also putting on a strong challenge in the smart phone industry today. As such, Samsung should improve its logistics management to increase productivity and efficiency to ensure that they stay ahead of their competitors.

The Ansoff matrix is another marketing planning tool that helps a business determine its product and market growth strategy. Ansoff's product/market growth matrix

Moreover, analysis using Day & Wensley’s model identified that Samsung could achieve competitive advantages within the tablet sector through their superior skill in innovation and information technology. In addition, their superior resource in global strategy and strategic alliances also contribute to gain the advantages. These allow Samsung to provide the differentiated product, superior customer value and cost reduction. However, Samsung’s disadvantages of key industry success factors: relative weak brand preference compared to the market leader and inferior battery life. Samsung would benefit in building additional superior skills and resources that it could generate the sustainable and further competitive advantages.

Ansoff’s Matrix is a useful tool for analysing the approach to the marketing strategy of a business. The matrix puts markets against products and will suggest one of four marketing strategies for the business to follow.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.

Hofstede’s study indicated that South Korea is a high power distance country which can be reflected in the organizational structure of Samsung. Prior to the acquisition, power distance in the workplace is high because there are ten hierarchical titles in Samsung. In this centralized organizational structure, there will be a large gap in the relationship between management and employees. Most decision and made by management who tends to have greater power and authority over the decision-making process and employees are expected to respect their manager. In contrast, Sweden is a low power distance country and value egalitarian. Therefore, after acquiring Samsung, Volvo flattens their organization structure by reducing the hierarchy from ten to three which consist of executives, managers and staff members, in order to identify employee by their jobs instead of by their titles.

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.

The function of the value chain is to contribute with cost- efficient activities and simplify the purchase process (Coughlan et al., 2006). But if the chain consists of many actors the ones far back could have limited or no contact with customers resulting in lost of valuable information (REF).

According to, the Ansoff Product-Market Growth Matrix is an instrument in marketing that was developed by Igor Ansoff. In the Ansoff matrix, it allows the marketers to look at different ways to grow the business through existing products and markets and new products and markets. Moreover, the matrix is composed of four various strategies:

This essay attempts to identify and analyse Samsung’s key features in their operations management. Operations Management is defined as the process where resources, flowing within a defined system (Kumar & Suresh 2009), are combined and transformed in a controlled manner to add value. These incorporate elements such as products, processes, technology, and equipment or quality control systems (Garrido, Martín-Peña & García-Muiña 2007, p. 2119). In addressing these elements the essay wishes to capture, which of these influence Samsung’s abilities successfully to obtain their competitive priorities (Garrido, Martín-Peña & García-Muiña 2007, p. 2120) and process strategies.

The chosen news article is the August 7, 2017 CNNMoney one about the head of the Samsung Company who is on trial where the prosecutors seek to have him serve a twelve year jail sentence for charges of corruption (CNNMoney, 2017). This particular article has successfully galvanized the three core concepts of organizational development. These include organizational climate, organizational culture and organizational strategies. Organizational culture is concerned with the deeply enshrined norms, values and characteristics that the members of the organization share. The organizational climate refers to the mood or singular personality traits of the organization that includes the beliefs and attitudes that bear an influence upon the members’ aggregate behavior. The organizational strategies deal with how the organization identifies problems, negotiates change, plans action and makes an evaluation of its progress. These concepts of organizational development as per the aforementioned article make the basis of the contents of this paper.

On being operational in the global market, Samsung has been subjected to various kinds of pressure. Therefore, the focus of this report is show while formulating an international strategy how Samsung should take both environment factors into consideration that will shape their business approach. The analytical business tools namely PESTLE and Porter Five Forces will be used to understand the micro and macro environment drivers of Samsung’s strategy.

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.