Business Level Strategy for Samsung Electronics

Business Level Strategy 1
Business Level Strategies

Business Level Strategy 2
Contents
Introduction.................................................................................................................................................3
Five forces of Samsung Electronics.............................................................................................................3
Four strategies of Samsung Electronics.......................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Business Level Strategy 3
Introduction
Samsung Electronics Ltd is the South Korean multinational company that headquartered is
situated in South Korea. It is the flagship company of the Samsung Chaebol which is accounting
for 70% of the revenue of the group in 2012. The understanding of the organization into new
structure and method has been talked about under this report. Alongside that, the organization
has stepped up with regards to make utilization of various plans for attaining the competitive
advantages. The report will portray the five powers of Samsung Electronics that shape the
organization to achieve the competitive advantage successfully.
Five forces of Samsung Electronics
Bargaining power of Suppliers
The role of the suppliers in the Samsung Company is huge as they are the source by which the
companies get the raw material for developing the products. This factor of the Porter's five forces
s importance for the company as it affects the positioning of the company in the view of the
marketers. In the context of the Samsung Company, it has been analyzed that the bargaining
power of the company is not high due to the scattered supplier around the world and the
company has various option to switch to another supplier for developing the electronics products
(Cho, Kim and Kim, 2015). It is the company that has belief in the innovation and suppliers of
the company are earning more due to the access production of the products of the company.
Hence, the company develops the rules and the policies for the supplier so that the arrangement

Business Level Strategy 4
of the raw material can be done with an efficient manner in which the company does continuous
improvement.
With regards to the effect of bargaining power of suppliers, it has been discovered that the job of
the plan can incorporate the incentive to even the most ordinary object (Choi and Park, 2016).
The job of the plan keeps immense significance on account of buyer gadgets. There are various
providers who offer the services at markdown costs by which the organization accomplishes the
competitive advantages by moving toward an expansive populace at sensible costs (Khan, Alam,
and Alam, 2015).
Bargaining power of Customers
Technology has become advanced nowadays and the attention of the customers is increased
towards buying the new products. Increased access to information regarding the products is
liable to lead a constant rise in the bargaining power of the consumers (Leonidou, Fotiadis,
Christodoulides, Spyropoulou and Katsikeas, 2015). The bargaining power of Samsung
Company is comparatively high because of the switching cost for the customers because they
have the right to switch from one company to another due to effective price and good quality.
Brands are investigating a massive in advertising and promotion in order to be a focus for new
customers.
In the context of the case study, it has been found that the company did many mistakes which
had become the reason of switching the customer from Samsung to other company. The
company had focused on gaining insights design delivery process and focus on the importance of
the design in the customer products. It has been analyzed that the Samsung electronics are
considered as the competitive company as it won various silver and gold medals due to