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Report on Business Strategy Of Samsung

   

Added on  2020-04-13

12 Pages3455 Words51 Views
Running Head: Business strategy Business strategy

Business strategy Table of ContentsIntroduction.................................................................................................................................................1Macro environment analysis.......................................................................................................................1Political factor..........................................................................................................................................1Economic factor.......................................................................................................................................1Social factor.............................................................................................................................................2Technological factor................................................................................................................................2Legal factor..............................................................................................................................................2Environmental factor...............................................................................................................................2Five force model..........................................................................................................................................3Industry Rivalry........................................................................................................................................3Barriers to entry and exist.......................................................................................................................3Power of Buyers......................................................................................................................................3Power of the suppliers.............................................................................................................................3Threat of Substitutes...............................................................................................................................3Analysis of porter five force analysis...........................................................................................................4Strategies considered by the organization..................................................................................................4Limited growth strategy..........................................................................................................................4Product life cycle of Samsung mobile phone...............................................................................................4Introduction stage...................................................................................................................................5Growth stage (2006 to 2011)...................................................................................................................5Maturity (2011 and till now)....................................................................................................................5Evaluation of the strategy...........................................................................................................................5Recommendation........................................................................................................................................6References...................................................................................................................................................7Introduction Samsung is one of the largest brands that are available in the market. The main aim of the company is to safeguard the leadership in the industry and to earn the competitive strength by

Business strategy taking into consideration manufacturing of product, design, marketing and sales. The name of the company is popular in the market and it is known as one of the top brand that is also popular among the customers. The meaning of the Samsung in Korean is “three stars”. Samsung also gave focus on the trade exports. The company operates its activities in 58 countries and the company has total 2,800 employees. The company offers products in the field of Tele communication, digital equipment and also in the sector of digital media. The essential part of the Samsung is the electronic segment. The company also wants to attain the top five positions inthe world by 2020 and the vision of the company is to enhance the revenue. The company gives emphasis on exploring the other markets like health, medicine and bio technology. The headquarter of the company is located in korea and Samsung has a sales network in 65 countries globally. The major product of the company is mobile phones that have a large market share globally. The company operates its function on the large scale (Woo-Seok et al., 2014).Macro environment analysis The macro analysis of Samsung consists of the PESTLE analysis that describes political, economic, social, technological, legal and environmental factors of the organization. Political factor This factor has a proper control on the regulations of the organization that consist of the regulations implemented by the government. The regulations that are implemented by the government is important to be considered by the business. In United States it is seen that politicalenvironment is stable to conduct the operations in effective manner. Policies that are given by thegovernment like taxation and also the rise in the petrol prices has given impact on the buying pattern of the individual. The industrial policies that are related to korea also plays an important role for guiding international competitiveness to transfer technology, so that the market can easily operate its activities (Erguler,2015).Economic factorThe economic factor plays a very significant role in marketing the products. The recession has given negative impact on the spending power of the individual. The importing prices can be enhanced when the sale continuously reduces and also the exchange rate of the mobile phones declines. The micro environment in which the Samsung conduct the operations is uncertain and

Business strategy it is important to reframe its strategies according the competitive environment. The saving grace for the company is related to tap the consumer’s disposable income in the developed world by enhancing into developed markets (Scholes, 2015).Social factor By considering the recent scenario, it is seen that people have strong passion and obsession for the latest technology introduced in the market. Mobile phone plays a significant role to satisfy the demand of the children. The interest of the children towards study reduces when they becomeaddicted of the mobile games. Samsung is considered as a family owned on a multinational platform. This means that despite of the global recognition it still conduct the activities from Korea. There are many aspects to its global operations and some consist of adapting itself to thelocal conditions. Samsung has to give focus on the products so that the customer preferences can be adopted by taking into consideration different markets. The importance is that the company operates in the market niche that is influenced by the preferences of the consumers and also the social factor is taken into consideration in various countries (Peppard and Ward, 2016).Technological factorThe mobile industry has been considered as one of the popular growing. The company introduces various mobile phones with different models in the market. Each model has a different and new feature that induces customers to buy the product. Samsung is popular for mobile phone. The customers purchase the product by taking into consideration innovative features introduced by the company in the market. Samsung has a great advantage to harness thepower of technology and also drives innovation for sustainable business advantage that is concerned with it (Wheelen and Hunger,2017).Legal factor Intellectual property is becoming an important aspect for the organization. There are huge chances of the conflicts that can take place like in case of the apple conflict with the goggle nexus one. The issue that arises is due to the patent. Samsung itself won a dispute with the company and the dispute is related to the patent issue that was initiated in year 2007. The company also has to face many penalties that are related to the imitation of the apple iPad and this has given impact on the consumer perceptions. It is seen that how the company operates the activities in developed markets by taking into consideration various laws and procedures

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