Market Growth in Foreign Countries: A Case of Samsung Group

Added on - 17 Oct 2019

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CHOI1Dongwook ChoiShireen MusaIN424 OL1May 1, 2019Market Growth in Foreign Countries: A Case of Samsung GroupIntroductionThe Samsung Group is a large South Korea-based company that includes many affiliatedcompanies. It is the biggest corporation in South Korea, creating almost 20% of South Korea’stotal exports in fashion, electronics, heavy industries, construction, food and other fields.Lee Byung-Chul, founder of Samsung, started his business selling dried food andnoodles, with $27 USD and 40 employees based in Taegu, Korea.The company expanded to Seoul which is the capital city in Korea trading and exportingproducts made in the city. The success of this business helped Samsung to make manysubsidiaries in insurance, securities, and retail. After the Korean war, South Korea had sufficientfood but lacked infrastructure for food production. Lee Byung-Chul recognized the consumers’needs, responded to it and became successful in his business.In 1960, Samsung started its electronics divisions. The first divisions included SamsungElectro-Machines, Corning, Electronic Devices, and Semiconductor and Telecommunications.Samsung built their first factory in Suwon, Korea in 1970. They produced black and whitetelevision.In 1977, Samsung started to sell color TV and established Samsung Chemical andConstruction.
Last Name2In 1980, Samsung entered the telecommunications industry when it expanded intomaking telephones and eventually into producing mobile phones.In 1993, Samsung decided to focus only on three industries: engineering, chemicals andelectronics. They sold ten of their subsidiaries and down sized. With this new strategy,Samsung invested in the LCD industry, becoming the biggest manufacturer of LCDs over theworld.Furthermore, Samsung continued to invest in the smartphone market by becoming thelargest manufacturer of mobile phones.I chose Samsung for my term project because it is one of the largest companies in theworld and ranked as the 6th most valuable global brand with an estimated brand value of $60billion.After the war between North Korea and South Korea, South Korea was one of the poorestcountries with $64 per capita. However, now the economy of South Korea is the 11th in theworld. The Samsung group accounts almost one-fifth of South Korea’s GDP. Samsung hascontributed to South Korea’s growth as one of the largest economies in Asia.I want to learn Samsung’s export strategy and how Samsung was able to penetrateforeign markets. I want to know how a business that started selling food items became one of themost recognized brands in the world. I think understanding Samsung’s strategies can help otherbusinesses who might want to follow in its footsteps.Company ResearchSamsung Group has been leading the international market position in varied scale ofbusinesses. The Group can be considered as a conglomerate and it comprises of over 30associated organizations that is associated with various activities. The various organizations are
Last Name3associated with manufacturing, engineering, supplying, along with various other services.Samsung Electronics is considered as one of the leading electronics organizations in the world,which has primarily resulted due to its innovations in different areas of technologies, rangingfrom smartphones, tablets, smart devices, smart refrigerators, smart ACs and similar suchinnovative technologies. It has been successful in expanding its businesses across the worldthrough strategic business processes that has allowed it to progress its operations within Koreaand eventually expand the same in the international markets.The Samsung Group upholds the belief of shared responsibility towards their people,planet and the society and therefore, across the corporate, occupies the highest standards so thatthe organization is able to contribute towards a better world. The main motto of Samsung is to“Inspire the world and Create the Future”(Samsung “Samsung Electronics Sustainability Report2018”). The core values of Samsung comprise of its people, excellence, change, integrity andcoprosperity.At the end of 2017, Samsung had nearly 217 worldwide operational hubs and thatencompassed of the corporate Head Quarters in Suwon, South Korea, its research centers, designcenters, sales subsidiaries, and manufacturing subsidiaries and have been operating in 15Regional Offices in Korea, Southeast Asia, Europe, Africa, North America and several otherregions across the world (Samsung “Samsung Electronics Sustainability Report 2018”).Internationalization of Samsung as a Market LeaderThe success of Samsung to become a market leader can largely be contributed towardsthe amalgamation of innovation, marketplace hunger, operational prowess, and marketingswagger. It has been determined that to promote its products in the global market, Samsungmakes very high investments in the marketing of the products, thereby gaining high recognition
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