Business Strategy

Company chosen is SAMSUNG

Submission Front Sheet
Unit Title and Number: Business Strategy (Unit 32)
Project title Business Strategy Project
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I certify that the work submitted for this assignment is my own. Where the work of others has been used to
support my work then credit has been acknowledged. I have identified and acknowledged all sources used
in this assignment and have referenced according to the Harvard referencing system. I have read and
understood the Plagiarism and Collusion section provided with the assignment brief and understood the
consequences of plagiarising.
Signature: Date: September 2020
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Business strategy September 2020
TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................3
Effect of macro and micro environment on Samsung......................................................................4
Internal environment of Samsung with its capabilities....................................................................7
McKinsey 7s Model.....................................................................................................................8
VRIO model...............................................................................................................................10
Value chain analysis.................................................................................................................11
SWOT........................................................................................................................................13
Porter’s five forces model.........................................................................................................14
Potential Strategic Directions and Recommendation....................................................................17
Theories, models, concepts and strategic planning.......................................................................17
Ansoff matrix............................................................................................................................17
Porter’s generic strategies........................................................................................................18
Bowman’s strategy clock..........................................................................................................19
TOWS framework.....................................................................................................................20
Strategic management plan......................................................................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23
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Business strategy September 2020
EXECUTIVE SUMMARY
The main purpose of the investigation is to analyse the business strategy of Samsung. It is
a South Korean company of multinational electronic consumer goods, and the registered office is
in Seoul, South Korea. Samsung objective is to modify the base of cost by taking the benefits of
new technologies digitally. Samsung is concentrated on the determination of the value of the
environment. The entity looks that correct factors of climate are maintained. Samsung financial
resources are highly valuable because these supports in investing in external change that take
place (Calabrese, 2018). The loyalty of an organization helps the management with operations
and attains competitive positions over players.
Impact of Macro and Micro environment on Samsung’s performance and its development
of organizational strategies has been analysed in this report. With the impact of internal
organizational environment on company's performance has also been evaluated by efficiently
evaluating all the required criteria. Samsung customer’s perception is large as of the cost price of
electronic goods products. It is suggested to the firm to focus on pricing of its services, improve
service line and focus on developing customer service tactics for delivering remarkable
experience to the target market. Implementation of Porter five forces has also been done in this
report and with that effectiveness and implementation of theories and concepts is interpretation
for strategic directions.
Evaluation of Samsung's business strategy is done in this report with the implementation
of theoretical models through which future working strategies can be developed. With that it is
also recommended that Samsung has to increase its involvement in providing high end smart
gadgets through which it can make sure that organization is able to attract new and trendy crowd
towards the organization and also maintaining loyalty of existing customers.
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Business strategy September 2020
INTRODUCTION
Business strategy is basically a way of companies or organization for running their
different operations in effective manner. Currently top-level management within most companies
has focused on making their business strategies very effective to gain long term profit in market
place. Currently those businesses are gaining huge competitive advantage in market place which
has excellent and well-developed strategies of business. This report discusses business strategy
of Samsung. Basically, Samsung is a multinational electronic gadget manufacturing company,
headquartered in Seoul, South Korea. This organisation was established in year 1938 (82 years
ago) (Samsung. 2021). The company mainly knows for its smart phones, because the brand is
highly successful in gaining large customer base in the international smart phone industry
(Gnanakumar, 2017). However, Samsung serves many other products as well, like; consumer
electronics, home appliances, TVs, refrigerator etc. The company’s unique selling proposition is
that Samsung always use competitive bases pricing strategy to sell its products and services in
market place in the high quantity (Park and Mithas, 2020). The main mission of company is to
increases its market share by 10%, and the vision of company is to achieve a large base of loyal
customers by providing quality products.
Currently this company has very large market share in the international smart phone
industry. It generally provides all ranges of products, like; budget products and premium
products etc. The report discusses different factors of Samsung’s macro environment by using
PETSLE analysis model. Internal environment and capabilities of this company also has been
included in this report. The porter’s five forces model is used here to analyse key competitive
forces. At the end, an effective strategic management plan also has been created in this report for
the Samsung. This strategic management plan includes some effective business strategies which
can positively affect to Samsung in market place.
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Business strategy September 2020
Effect of macro and micro environment on Samsung
Macro environment or external business factors have a direct impact on the performance
and decisions of organization. Thus organization uses various models or frameworks such as
PESTEL to analyse the impact of these elements on organizational performance (Iamratanakul,
2018). The influence of theses macro elements on Samsung is as follows.
Political: The entity performed generated good growth and revenues in the U.K., South
Korea, Europe and Asia. Company performance was offset by a reduction in profit margin in
non-Asian market. Currently decisions are taken as per global political stability and Korea
relation with other nations. Regulation of data sharing and taxation policies of South Korea are
being followed. In global branches as per different nations political conditions the decision are
taken. Despite the issues, Samsung maintained its decision making as per stability of South
Korea political conditions (Lestari, S.D. et al. 2020).
Economic: Samsung objective is to modify the base of cost by taking the benefits of new
technologies digitally. Currently South Koran economic conditions are stable and company is
attaining better opportunity. Global economic factors are also good and it is also allowing
Samsung to have adequate growth and expansion. South Korea GDP is 1.65 trillion U.S. dollars
and it is also supporting entity to have easy access to resources (Statista, 2020).
Social: The change in preferences and lifestyle of the customer directly influences the
company's financial health. The demand growth for the internet has been beneficial for both
work aim and entertainment. The difference in the marketer’s educational background and target
market make obstacles to significant information flow. For example, Samsung introduce new
phones and TV according to need of customers, such as, S21 5G according to future demand of
phone market.
Technological: The entity has leverage over its players regarding the infrastructure and
assets but is more emphasized on optimum assets with sustained leader by maintaining the smart
capital infrastructure partnership and have 5g market lead. Use of new tools is being considered
by entity through having focus on different technological resources in global market (Liu, et al.
2019).
Environmental: Samsung realizes the reality that accesses to the future digitally is an
opportunity that must be distributed equally so that the most vulnerable are not left behind. To
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Business strategy September 2020
decline the footprint, the firm has decided to concentrate on switching to the renewable energy
source for vital supply.
Legal: Samsung focuses on the legal aspects and policies regarding environmental
protection and other actions are necessary. Avoidance of legal policies are creating problems and
impacting the working measures. As the firm is incorporated and formed in Korea so while
having operations in India the income tax department regulations should be followed else issues
can be faced.
External Factors Internal Factors Opportunity or
Threat
Reason for being
opportunity or
threat
Political
 Political
instability of
UK is making
changes in
legal
legislations
due to which
Samsung also
has to make
changes in its
working
strategy.
 Events of
Brexit, is one
example in
which
company's
geographic
reach was
affected.
Expenditures have
increased because
new development
requires high
investments which
will make negative
impact on
Samsung's economic
growth.
Threat
It has affected
Samsung's
market share in
negative way.
Brexit's uncertainty
has increased the
expenditures for
Samsung, because
the company now
may have to pay
taxes at areas
which were freely
available before
events of Brexit
(Robinson and
Choi, 2020).
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Business strategy September 2020
Economical
Increasing
unemployment
rates of UK has
forced company
to reduce its
product pricing.
Samsung's sales are
decreased because
buyers can't afford
mobile phones
(Kastrenakes, 2019).
This happens
because customers
are not able to
purchase the
organizational
products due to
which sales are
affected.
Threat
Samsung has to
face decrement in
product sales.
Samsung has to
decrease the
pricing of their
products and
should also provide
affordable products
to their customers,
so they will be able
to regain its
market.
Social
Increasing
popularity of
social media
in new
generation.
online
retailing of
product
involvement
in one stop
shopping
Samsung has to
upgrade its products
such that they are
able to fulfil
customer's
requirements.
Opportunities
Samsung in
enhancing its
sales and
reaching out vast
range of
customers (Wulff
and et.al, 2019).
During COVID-
19 company's
sales and
operations were
affected due to
which goal
achievement
probability was
affected.
Changing attitude
of people towards
technology,
company is making
changes in their
products and also
changing its
services based on
customer's
changing
requirements.
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Business strategy September 2020
Technological
Customers are
showing high
interest in buying
technological
advanced
products at
affordable
pricing.
Company has to
develop high quality
products at
affordable pricing.
Opportunities
Samsung can use
this opportunity
for attracting
wide range of
customers toward
them. With that
company must
also tend to
integrate
technological
advancements
like AI through
which it can
ensure that
customers are
getting best in
class products
through which
their loyalty can
be increased for
Samsung.
Reason for this is
the availability of
high quality
products at an
affordable pricing.
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Business strategy September 2020
Environmental
Government laws
regarding
environment, has
to be followed by
Samsung
otherwise it has
to pay penalties
which will affect
economic growth.
 To reduce
carbon
footprints.
 To make
positive image
of company in
front of buyers
and government.
Threat
Increases the
organizational
expenditures.
Government as
well customer
closely monitors
company's
behaviour
regarding
environment. This
also affect
company's sales.
Legal
Copyright law
implemented by
government.
Company has to
face penalties by
government is
violation of law
accrues.
Both
Samsung have to
fully develop
their own
technology,
which is a time-
consuming
process
Laws and
regulations issued
by government and
it is Samsung's
responsibility to
follow those rules.
Internal environment of Samsung with its capabilities
Internal environment- It consists of internal factors which affect operations in
organization, like management, work culture, operational management and many other factors
which have an impact on Samsung's performance (Montenegro and Barragán, 2018). These
factors are used for deciding the operational strategies, so Samsung can improve their
performance on ground level and easily achieve their organizational goals.
Stakeholder
Stakeholders of Samsung can be an individual or a group of people who are directly or
indirectly affected by the organizational activities (Sia, Soh, and Weill, 2016). In order to
develop efficient organizational strategies stake holders has to be categorized on the basis of
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Business strategy September 2020
their power and interest in company. Skate holders are divided into four different categories
which are as following.
Stakeholder of organization can be an individual or a group of people, who are affected
by the decisions and activities happening in organization. Stakeholders can be grouped into four
different categories based on their interest and power which they are having in organization.
Having high powers with high interest in organization
Higher authorities in organization like board of directors, are involved in this section
because they have high interest in organizational operations and also having high powers.
High power with low interest in organization
Investors are considered in this because they are having high powers to take decisions
within the organization but are less interested in activities happening within organization.
Low power with high interest in organization
Customers can be counted in this category, who are having low powers to take decisions
but are highly interested in activities happening within organization.
Low power with low interest in organization
Non targeted organizational customers can be counted in this category because they are
not aware of organizational working and at the same time are less interested in company.
McKinsey 7s Model
It is a tool which is used to analyse organizational design of the company for increasing
its effectiveness by interacting 7s of organization. Following are 7s of organization.
Strategy
Samsung provide products on the basis market readership such that customers can get
efficient and effective alternative for buying products. Apple, the strong rival of Samsung, could
be described as the business from which Samsung mostly recreates. In addition, Samsung's
growth strategy is focused on the routine screening as well as utilisation of consumer prospects
including new device creation (Gökdeniz, Kartal & Kömürcü, 2017)). The strategy of Samsung
required delegating duties downward.
Structure
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Business strategy September 2020
Samsung is integrate divisional structure and the firm is categorized in; customer
electronic, device solution & Mobile communication and IT for effective communication with
customers (Dudovskiy J., 2017). Nonetheless, the organisational structure of Samsung can shift
in the near term in Matrix or horizontal structure to accomplish the objectives.
Systems
It uses technological advancements for smooth working among departmental activities.
This involve the recruiting and hiring system for workers, the staff development as well as
induction system, the distribution processes for transactions, the system administration for
customer relationships, the business analytics system, the information administration system as
well as others. The system required to develop new guidance and policies for employees to
segment market for successful product development procedure.
Style
Style is the way in which organizational activities are decided thus Samsung uses task
culture for high performance. The firm is integrating participative leadership/management style
that enables the firm to enhance employee motivation (Giachetti & Marchi, 2017). Apart from
this, functional team is the strength of the firm to complete a task.
Staff
Samsung provide efficient training to their employees before implementation of any new
upgrade, so their working can be improved. The main focus of the firm is to hire creative,
dedicated, talented, dynamic, and experience staff members in the firm that allows the firm to
utilize their best talents in the firm’s creativity and innovation. However, it is suggested that HR
should establish systematic process to identify gap in required capacities and capabilities.
Skills
Samsung is able to provide wide variety of electronic items to their customers and with
highly trained employees company is capable for achieving its objectives. It is essential for the
firm to focus on IT staff skill set to build up e-commerce services through online stores. The
skills of the workforce are generated particularly for the job requirements and roles at Samsung
Group to provide competitive edge.
Shared Values
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Business strategy September 2020
The main objective of Samsung is to become world's largest smartphone manufacturer.
The core value of Samsung include; creativity, honesty, quality, transparency, accountability,
heritage and trust. Senior management members in Samsung Group required to promote the
significance of low-end marketplace, consumer’s centric approach will be spread across the
organization.
VRIO model
It is framework which is used by Samsung to identify their commutativity potentials, by
analysing value of their product, rarity, immutability cost and organisable characteristics.
Resource Capabilities Valuable Rare Imitable Organized
Semi-Conductor Processing
Technology
yes no yes yes
Quality of product yes no yes yes
Brand value yes yes no yes
Valuable: It shows that Samsung financial resources are highly valuable because these
supports in investing in external change that take place. This also aids the company in combating
the threats externally.
Rare: Samsung distributed network is rare because the players need lots of time and
investment to come up with an effective network of distribution than that of the chosen firm.
They are further possessed by lesser organizations in the industry. Company is having rare
supply chain network that allow having easy distribution of goods and services. Patents are also
rare as they are not easily present and are also not possessed by the players. Unique phone
features are also considered as rare factor in the product line of Samsung. This helps the
company to consider them without competitor’s interference (Yucel, 2018).
Imitable: The local services are not costly that to imitable. These are acquired by
rivalries also if they invest a vital amount in R&D. They further do not need long experience
years. Thus, the local services by Samsung need it with a temporary competitive edge that the
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Business strategy September 2020
players can also acquire in the future. Company is also investing more on the R&D to make sure
that development measures are properly considered.
Organized: Through giving multiple options and ceaselessly plans modifications by the
evolution and innovation of the new service continuously, Samsung is exploiting the resources of
services premium (Alvi, et al. 2020). By the various alternatives available, the majority
considerable can innovative the things that they like and the individual who wants to see new
services each time and can now work undoubtedly within Samsung. Organized way actions are
being designed by entity to have growth.
Technology
Samsung's technology for developing products is considered as one of the valuable assets
of the organization, however the technology for budget phones is commonly available and not
rare.
Quality of Product
Company follows a strict rule of maintaining high quality in every product, this is a very
valuable step however due to tough competition this is not rare because of other better
alternatives. But still this is an organized and less imitable procedure.
Brand Value
Company has made many efforts to make high brand value, this is important for
organization that they maintain this brand value. This is company's strength.
Value chain analysis
Value chain analysis of organization consist of activities which an organization has to
perform in order to fully develop a product from beginning to end. Value chain analysis is used
to have a visual representation of the operations happening in organization for developing
product to its selling stage. This analysis is used for making future strategies and improving
current operations of Samsung.
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Business strategy September 2020
Source: Baumgardner, 2019
Value chain analysis consist of two main activities in organization, in which one is
Primary activity and other is Support activities. So it is important for Samsung they make their
strategies such that they are able to improve their performance in these categories.
 Primary Activities- It consists of five activities happening in organization, which are as
following- Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales,
Services.
Inbound logistics for Samsung involves getting raw materials for developing products.
Operations include activities done for developing product and outbound consist of transportation
of product to customers. Marketing and sales are related to selling and distribution of product.
The inbound and outbound logistic is the strength of Samsung that is managed by SELC
and Samsung SDS (Lee, 2019). On the other hand, marketing and sales are considered as
weakness of the firm that need improvement as of intense competition and their strategy to
market and sell the Smartphone such as Apple Inc.
 Supportive Activities- This involves inter departmental activities done for improving
Samsung's performance in front of their customers it includes activities like, Firm
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Figure 1: Value chain analysis

Business strategy September 2020
Infrastructure, Human Resource Management, Technological Development, and
Procurement. Firm Infrastructure for Samsung consists of management structure, finance and
legal systems made for effectively managing operations (Calabrese and et.al, 2018). HRM
consist of activities done for effectively managing employees and taking recruitments for
improving Samsung's operations and goals achieving characteristics. Technological
developments are various steps taken to improve the productivity of Samsung, by
establishing new machineries. Procurement is strength of the firm as the firm formed an
International Procurement centre that operates as the central hub for supplier relation
management. In addition to this, HRM with the continuous training and development is
strength of the firm in adding value (Lancioni & et al., 2018). On the other hand, the new
improved technology activities will require minor tweaks throughout the activity of
promoting technology growth, mainly with product upgrading and modifying the
construction process as it considered as weakness for the firm.
SWOT
SWOT analysis is strategic tool which is used organization to identify their strengths,
weaknesses, opportunities and threats, for making their business strategies.
 Strength- Samsung is one of the world's largest telecom industry, it is able to provide its
products all over the globe and has managed to captured a large international market (Omer,
2019). Company is capable to implement innovation in their products, due to which it has
increased the loyalty of their customers. With that it provides wide range to smart products
which enable customers to get more efficient control over their operations.
 Weaknesses- Company is not able to follow a fix pattern for introducing its new products
which makes it difficult for customers to differentiate new products from old products due to
which sales of new product is affected. Company in unable to provide new software
developments, their products are mostly inspired by their competitors’ products (Kopp,
2020).
 Opportunities- Samsung can focus its efforts on making a pattern for launching their new
product, so their customers can easily identify new product. With that company can
concentrate their product on student’s requirements through which they acquire large number
of customer toward them. Company provide smart house products which are highly efficient
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Business strategy September 2020
than traditional products but Samsung may use this for developing inter connected products
in which customers can effectively control full house operations.
Apart from this, Samsung is planning to unleash its revolutionary 'Triple Safety
Proposition' air conditioning device which combines cutting-edge innovation as well as
outstanding design that will be an opportunity for the firm to expand the market. With the new
trends falling out of style in a moment, the mobile market is extremely competitive. By creating
the trends with excellent as well as creative products such as the foldable phone, Samsung can
achieve tremendous growth.
 Threats- Samsung was banned in some countries due to which it has affected their market
share in many countries. For example, the model Samsung Note 7 is forbidden in United
States, in all airline flights because of roughly hundred circumstances when the devices
overheated and sometimes injured the holders (Jansen, 2016). With that increasing
competition in phone manufacturing sector has reduced Samsung's market share (Apenko,
2017). Collaboration of Samsung's opponents is increasing challenges for company, as the
upcoming product developed by them would be more advanced in features, making hard for
company to catch up.
Porter’s five forces model
Porter’s five forces model or tool is very helpful for different companies and ventures in
market place (Tang, 2017). Basically, this model first introduced by Michael Porter in year 1979,
in which he has created this model for knowing key competitive forces in market place.
According to this model of Mr. Porter, there are five types of competitive forces affects to a
business in market place, in which Porter’s these five forces has been discussed below;
Bargaining power of suppliers (High)
Currently the bargaining power of suppliers is very higher, because there are number of
electronic gadgets manufacturing companies is very higher in the comparison of number of
suppliers. Due to which Samsung is not able to purchase raw-material on its terms and
conditions. On the other side, many suppliers of Samsung are technology-based ventures which
always put their huge efforts in researching and innovating technologies. In this situation, these
suppliers give priority in providing their exclusive and innovative products to those companies
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Business strategy September 2020
which are ready to give very higher prices. That’s why currently bargaining power of suppliers
is high (Cassell, Cunliffe and Grandy, 2017). The global presence of Samsung means that it has
tremendous buying power that enables contractual partnerships with electronic consumer goods
vendors to be developed. It is noted that perhaps the distributor's effect has a bearing on the
firm's profit since it needs high costs to better control over distribution services.
Bargaining power of customers (High)
Bargaining power of customers is also high, because currently a customer has lots of
companies to buy a smart phone or any other electronic gadget. In this highly competitive market
place, each electronic gadget manufacturing company is trying to attract large number of
customers, and that’s why these ventures give very attractive offers and discounts to customers.
This is the main reason that, currently bargaining power of customers is high (Kabeyi, 2018). In
this situation, top-level management of Samsung have to run various creative and productive
marketing campaigns for gaining attracting large customer base. Electronic goods are
increasingly growing and there is evident change in their requirement as well as demand
regarding prices upgraded goods (Liu and et al., 2019). There are several competitors like MI,
Oneplus, Sony, LG, etc. who provide a variety of offerings including various pricing ranges that
give the customer high bargaining power. Because of the lack of prices and the availability of
distinct items, the buying power of buyers in the electronic consumer goods sector is high.
Threat of substitute products (High)
The threat of substitution is very high for Samsung because in order to gain large profit
margin many other organizations are also increasing their product reach in other sectors as well
this can be seen in case of LG and other market competitors. In which they are providing other
alternatives their customers apart from such that they are able to increase their customer count.
This happens because although Samsung provide wide range of products which can give
company a competitive edge but still doesn't lead it far ahead of other tough competitors. The
very ambiguous existence of the limits of the segment has caused considerable uncertainty inside
the group. Upgrading fixed-mobile infrastructure is a vital probability for small electronic goods
providers throughout the prospect (Bai, Cordeiro and Sarkis, 2020). There seem to be a wide
variety of phone producers are operating in the market, however there are fewer brands having
high quality product line that can offer better satisfaction to customers at the limited cost range.
Therefore, the threat of alternative services may be claimed to be modest.
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Business strategy September 2020
Competition in the industry (High)
Samsung is a multinational organization which is having wide range of customers but
company is facing tough competition from other multinational a local organization due to which
its sales are limited in smart phone industry. On the other side, LG, Whirlpool, Boat, Sony etc.
are main competitors in the industry of electronic appliances (Patzold, 2018). Global consumer
electronic market is heavily controlled as well as fragmented, and there is often a significant
degree of rivalries for Samsung. The largest players in the consumer electronics sector are
Samsung, LG, Sony, etc. These are three major brands in sector and new participant may not
enter easily due to cost factor. Sony, from the other side, is a global corporation which provide
heavy rivalry to the Samsung.
Potential of new entrants into the industry (Low)
This force is low for the company, because there is already very higher competition in
market place, so that a person will definitely think about this competition before entering the
market. But Samsung have to be ready for dealing with different new entrants, because many
times, many businesses comes in the market place with their innovative ideas, and take huge
market share from existing companies and businesses (Stradley, J. 2019). Global is closely
regulated and protected by significant entry hurdles and strict preliminary fixed cost
requirements, new ideas by newcomers are unlikely. Increase in the competition is also affecting
the outcomes. The possibility of new entrants inside the segment could be claimed to be minimal
because cost of production is high and it is not easy for new entrants to manage activities.
Appropriate strategies for improving market position and competitive edge
These all are key competitive forces of market for Samsung Company. In these all forces,
the company have to deal with high competition in industry and bargaining power of customers,
because these two forces can negatively affect to its sales ratio in market place (Sia, S.K., Soh, C.
and Weill, P., 2016). In this situation, top-level management should develop a strategic
management plan for systematically dealing these two forces. Basically, this plan includes
various strategies of business, like; Ansoff matrix, Porter’s generic strategies etc. which can help
to Samsung to gain huge profit margins and competitive advantage in market place.
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Business strategy September 2020
Potential Strategic Directions and Recommendation
Theories, models, concepts and strategic planning
There are some models, theories concepts and planning has been mentioned below which
will defiantly support to Samsung for gaining large customer base and competitive advantage in
market place. A productive strategic management plan also has been discussed below which can
support to business for gaining effective outcomes in market place.
Ansoff matrix
Ansoff matrix is very useful model to Samsung that includes four major business
strategies which will help for selling its lots of unites in market place. All four strategies of
Ansoff matrix has been discussed below;
Market penetration: In this strategy company tends to concentrate efforts on increasing sales in
the existing market place with the existing products which reduced expenditures. According to
this business strategy, top-level management of Samsung have to focus on increasing its sales
ratio by selling its existing products and services in the present selected market segments (Chan
Kim, 2019).
Product development: New products are introduced in the existing market for increasing
customer count and loyalty of existing customers. Product development is another key strategy,
in which the company have to focus on developing new products and services for selling them in
the present market segments. The R&D department of company have to be highly active to
enable company for taking lots of advantages this product development strategy.
Market development: In this strategy company tends to enter into new market place with the
existing products for enhancing organizational sales, this helps company in achieving customer
diversification. Market development is another major business strategy under the Ansoff matrix,
in which top-level management at Samsung have focus on entering in the new market segment
by using own existing products and services.
Diversification: Diversity is the strategy in which organization introduces new product in the
new market place for achieving high level of brand awareness. According to this diversification
strategy, the company have to develop a new exclusive range of product or service for launching
it in the new market segment.
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Business strategy September 2020
In order to achieve high brand awareness and increased customer count Samsung uses
product development in which it provides new products to customers for achieving high
increased organizational sales.
Further, the Ansoff matrix is regarded as a benefit to set market penetration. It is noticed
that creating goods and services development in operations is relevant. The new plans in service
development in the recent changing market scenario aids in attaining the firm objectives. The
firm performance process is required to enlarge. This helps to have a practical outcome and
allows Samsung to facilitate new services in the functioning of the business.
Porter’s generic strategies
Porter’s generic strategies are some more effective business strategies for the Samsung
Company which will affect company growth in negative way.
Cost leadership: It is the framework that supports Samsung to vitally work in the market of
electronic goods to offer services at an affordable price and makes a work-life balance. In this,
the company can attain a position based on charge leadership. The cost strategy is further
considered in a desirable manner that customers are grabbing towards the services and brands
(Coffie, 2020). Besides this, the more expandable features of time are keys to take so that
opportunities in the market can be increased.
Differentiation strategy: Samsung, with the accurate development of innovation differentiation
in the task of business, gains a competitive position. It assists in having a proper plan related to
the products and services. It also aids a firm to constitute distantly over competitors in the
market. The differentiation model in the goods and plant growth and development aids in
attaining desired goals of the business. This model imposing helps the chosen firm to launch new
plans and services so that customers can be uniquely served. Further, the theory of cost
leadership helps the firm to have rapid competitive forces (Bai, Cordeiro and Sarkis, 2020).
Focus strategy: This is another major strategy which can support company for gaining excellent
results in market place. According to focus strategy, the management be focused on different
market situations for analysing which factors can affect Samsung positively and which can affect
negatively. By using this strategy, it can simply remove those factors from its business
operations which can affect company in negative manner.
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Business strategy September 2020
Bowman’s strategy clock
This is another key model such as Ansoff matrix, because this model also aware about
various strategic positions which can help to company in the business growth. It can be said that
Samsung is having a focus on the clock strategy and it allow having accurate development
respecting diverse measures. Differentiation is a factor that is considered by Samsung in its
product line and ensures to have growth. Differentiation strategic position refers that the business
has to make some different and exclusive products and services to retain maximum customers.
Focused differentiation is a factor that assists in accomplishment of goals and ensure regarding
development. Risky high margins at the time of brining innovative goods like watches, phones
and television are also being considered (Calabrese et al., 2018). This is basically an
uncompetitive strategy, so that according to this strategy, the company have to charge higher
prices while selling premium range of products. Pricing based monopoly is also assist in
boosting performance. A company can set the price of its products and services something
higher, if it has analysed that, no other business exists in market place which enable to provide
exclusive products. Low and medium income people are being hired by entity through having
focus on values like low price and low added values.
Loss of market share is also being faced by Samsung but low prices helps in gaining
better advantage. Performance of entity is being improved accurately by considering the clock
strategy. Hybrid factors are also being considered by Samsung to have success and ensure
regarding development (Jelassi and Martínez-López, 2020). Hybrid is another major strategic
position that can support to company for making balance between price of products and
differentiation. The main objective of this strategy is to provide great margins to Samsung.
Success rate of entity is also being improved using the strategy.
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Business strategy September 2020
TOWS framework
TOWS analysis is very helpful tool for identifying and analysing key internal factors of a
business (Jelassi and Martínez-López, 2020). It refers four major factors which has discussed
below
Strengths (S): The company is currently
leading the international smart phone
industry, and currently it has the largest
customer base in Asian countries, so these
are strengths of company.
Opportunities (O): The company has
opportunity to boost its performance in market
place by adopting and implement Ansoff matrix
and porter’s five forces strategies
Threats (T): High market competition is
main threat to Samsung, because day to
day competition in this increasing (Jun and
Rowley, 2019). Currently Apple, Nokia,
Vivo, MI etc. companies gives very tough
competition to Samsung.
Weaknesses (W): Samsung’s galaxy “J” series
of smart phone is very unproductive to
customers, because these J series phones has
high hanging problem.
SO Strategies: Company can use the
strategies, like; Ansoff matrix, because this
strategy will give change to company for
always be the top in own industry.
ST Strategies: The company have to adopt
competitive-based pricing strategy to gain huge
competitive advantage.
WO Strategies: The company have to use
product differentiation strategy to make its
products something unique and product etc.
WT Strategies: Currently Samsung should adopt
product development strategy for making quality
products to deal with high market competition.
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Business strategy September 2020
Strategic management plan
Vision
To be a leader of electronic consumer goods in an increasingly connected globe.
Mission
To enrich the lives of consumers by the unique mobile and other electronic goods and be a high
financial services organization quality and to be the organization that people continue to choose and
trust.
Core values
It boils down to the three core values of trust, simplicity, and speed by being fast to deliver while
being clear in what it says and does. The consumers would believe in it. The customers are as diverse
as the consumers. It is the diversity strength it takes care to preserve. It further respects ad care about
the sale management environment in which it performs.
Aim
 To increase market share by 10%
 To increase existing sales ratio.
Objectives Specific: Current aim of company is completely specific, because after achieving this aim, the
company can simply gain huge profit in market place. Measurable: The management can simply measure effectiveness of its aim, because increasing
market share by 10% is great thing to a business. Achievable: It will simply achieve this aim, because many other companies also set this type of
aims in market place. Realistic: Increasing market share aim of company is very realistic because Samsung achieve
can achieve this aim by putting lots of efforts in daily operations.
 Time frame: The management of company has decided to achieve this aim in the time period of
one year.
Action plan
 For the mission and objectives accomplishment, more plans, services, and policies are
introduced and innovated. Samsung is more focused on increasing and improving customer-
management terms. It is considered as a significant policy that would help in enlarging the
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Business strategy September 2020
customer's satisfaction and desires in the market. The services development is performed in
accordance with the needs identified by imposing the management and consumer relations. For
the company, innovation is the effective chance to have a well-created diversification (Chan
Kim, 2019). Further, creative and differentiated manner are identified to cope up with the
hurdles and plan the long term presence in the performance of the company.
CONCLUSION
On the basis of above findings, it can be concluded that top-level management of
Samsung have to develop and implement various productive strategies of business for gaining
excellent outcomes in market place. According to PESTEL analysis, currently this brand is
affected by many macro environments factors in both ways positively and negatively, so that the
management have to systematically deal with the impacts of these factors. It can be also
concluded that, many internal factors and capabilities also highly affects to company. On the
basis of porter’s five forces model, five competitive forces of market also affects ventures, so
that the management have to use various strategies of strategic management plan, like; Ansoff
matrix strategy, porter’s generic strategies, extended model of Bowman’s strategy clock for
gaining an excellent profit in market place with effective competitive advantage
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Business strategy September 2020
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