Critical Analysis of Mobile Phone Manufacturing Industry

Business Strategy

Contents
PART 1: Business report of Cesim..................................................................................................1
Background of Cesim company...................................................................................................1
Critical analysis of mobile phone manufacturing industry..........................................................1
A critical assessment of sources of competitive edge..................................................................7
Detailed critical analysis of Cesim company’s activity...............................................................8
RECOMMENDATIONS TO CEO FOR THE IMPROVEMENT OF COMPANY’S
PERFORMANCE............................................................................................................................9
PART 2: Stakeholder Report.........................................................................................................10
Stakeholder Analysis.................................................................................................................10
Stakeholder Management...........................................................................................................12
REFERENCES..............................................................................................................................13

PART 1: Business report of Cesim
Background of Cesim company
Business strategy can be defined as a set of different types of moves and actions which are taken
by business entities for the purpose of sustaining in market, attracting large number of customers,
attaining long term business goals and enhancing performance. It guides organisations to form
strategic decisions which can help to reach the predetermined goals (Bae, 2018). This report is
based upon Cesim Simulation for which Samsung Company is selected by team red (Brennan,
2014). It is one of the largest manufacturers of mobile phones. It was founded in year 1938 by
Lee Byong Chul and mainly established in Suwon, South Korea. Different types of products such
as laptops, mobile phones, telecom and network equipment are sold by it all around the world.
Currently it is generating revenues of more than 95 billion dollars from its operational activities.
It human resource strength is around 325000 employees. The objective of the company is to
provide quality product in market so that it can gain leading position in this particular industry.
One of the amazing think about company is it manufacture of produce components for Apple.
The major factors which are resulting in good position of Samsung are equities, short term and
long term debts. In addition to this, its marketing team conduct market research in order to gain
an understanding about customer requirements and market conditions that help company to fulfil
requirements of customer (Specht, 2019). Moreover, its managers ensure that on time and quality
service is given to customers which is one of the reason of its success and growth in market.
With the help of Cesim Simulation it has been analysed that competitive position of the
company is good because it is the second highest revenue generators as compare to other
organisations. Total profits of it are resulting in its 3rd rank in creating large amount of profits. It
is offering good returns to the shareholders which is around 11.53% per annum. Return on equity
of the Cesim company is also very high. Market growth of the enterprise is being levelled up off
to 3 – 7% which has resulted in enhanced competitive position in the market. It has been
estimated that market growth of the enterprise may rise by 22%, 30% and 20% in USA, Asia and
Europe respectively. Demand of the company has been increased in 8th round as compare to last
round which shows that it has gained a higher level of competitive advantage rather than other
companies in the simulation. All the liabilities which are required to be paid by entity in less than
one year are paid off and other long term debts are being reduced. Total shareholder’s equities
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are being increased in current round. All these elements and their changes are resulting in the
good position of the company (Brewster, 2017).
Critical analysis of mobile phone manufacturing industry
Industry analysis: It can be defined as main function which is performed by owners of a
company to analyse existing environment of market. In order to analyse an industry, it is very
important to assess different factors which are related to it. There are four different types of
elements which are considered as the part of it and discussed in context of mobile manufacturing
industry and Samsung are discussed below:
 Technology: Telecommunication industry generate revenues with the help of technology
because a slight change in it may result in decreased profits or incomes. As a part of this
sector Samsung focuses on latest trends regarding technology so that new and innovative
products could be offered to clients. It has helped to transfer voiced and non-voiced data
from one place to another. With the help of new and innovative technologies the industry
has started to form plans for identification of new data optimised techniques (Cortimiglia,
Ghezzi and Frank, 2016). Currently 4G technology is in trend for all the mobile phone
which could be replaced by 5G in future which will facilitate to communicate in more
quick manner. In next three to five years there will be high demand of mobile phones
with 5G technology so all the manufacturers are required to make investment in research
and development activities. It can help to analyse the ways in which technological
advancement could be made.
 Buyer preference: Every organisation in telecommunication sector should know the
importance to take buyer’s preferences in to consideration while manufacturing new
mobile phones so that large market share could be captured. There are various companies
such as Samsung which are operating business under this industry. If the entities are not
able to focus on preferences of customers, then it may result in decreased profits and
market share. The factors which may result in changes in choices of buyer are market
trends and innovations. In upcoming three to five year their preferences may get changed
due to high level of competition and revolutions within the industry. In order to reach
long term business objectives such as profit maximisation it is very important for
companies in telecommunication sector to focus on likings of patronages (Galbraith,
2014).
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