Samsung Company Analysis : Assignment
Added on 2021-06-17
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Running head: SAMSUNG COMPANY ANALYSISSamsung Company AnalysisName of the Student:Name of the University:Author Note:
1SAMSUNG COMPANY ANALYSISSection 1Company IntroductionThe chosen company is Samsung which is a multi-national company originated inSouth Korea in 1938. However, decades later, today Samsung is reputed for ranking 6th in theposition of “Best Global Brands 2017” owing to their innovation and growth which havesustained them in the market throughout. Samsung started to expand its business and gainedentry in the field of petrochemicals, manufactured refrigerators, washing machines, laptops,tablets, PC, and tape recorders. Samsung partnered with BP in 1989 to form BP Chemicals.Samsung had proved its efficiency and capacity in the field of electronics and innovationwhen it launched its first internet savvy phone in the year 1999 which let the company toincur huge amount of profits (Nordhaus, 2015). Samsung has shown its keen interest ininvesting in technology that would produce inventive devices immensely useful to customerslike Ring Video Doorbell Pro, gear watches, tablets and more. Strategic vision is a set of ideas and activities that define and determine businessdevelopment. It predetermines how a business would be executed so as to deal with thehindering factors like decreased productivity, loss of customer loyalty, declining profit leveland economic crisis due to recession. Samsung and other companies must adhere to strategicvision which would be competent enough to improve the corporate management. A well-crafted strategic vision has the ability to envision long-term, help the entrepreneurs adopt abroader view of the organization to assess its competition and current strategies and help theorganization progress towards its goals and objectives. Samsung’s strategic vision is todevelop innovative products and create for a better globalized society (Coughlin, 2016).Competitive advantage is when a business firm is able to deliver the same benefitslike its rival competitors but at a comparatively low-cut price or if the company is in a
2SAMSUNG COMPANY ANALYSISposition to exceed the profits more than its competing products. In case of competitiveadvantage, a firm needs to find cheap labor ad sale its products at a high price in the market.For every business organizations, it is necessary to implement competitive advantage to gainmore satisfied customers who will receive high value through their products. In order to stayahead in a competitive market competitive advantage is a pre-requisite to ensure marketleadership and domination of the company (McWilliams et al., 2015). Some of the mediumsthrough which competitive advantage can be practiced are technology, human resource andorganizational structure. Competitive advantage can be achieved through cost-leadership,product differentiation that would help a company set its image differently from the relevantcompetitors, forming strategic alliances with other industries and acquire defensive strategiesthat would be necessary to actively cope up with stiff competition business instability andmarket saturation. Competitive advantage would also help the company to criticize a rivalproduct in order to add it to Samsung’s own advantage.PESTEL framework is a tool by which market analysts can analyse the macro-environmental factors that can have an impact on the business firm. PESTEL analysis takesinto consideration the political, economic, social, technological, environmental and legalfactors that can exercise control on a chosen industry. The analyses help a company todetermine its strategic management that would help them in gaining a competitive position inthe market. PESTEL is one part of the entire scenario which includes strategic planning,assessing internal capabilities to assess that will help an organization’s strategic decisionmaking (Cooke, 2017). Section 2PESTEL analysis
3SAMSUNG COMPANY ANALYSISPolitical factors The main political factors that can have an impact on Samsung is South Korea’sforeign policies, frequent government changes and controversial politics that have plaguedthe nation. Under these circumstances Samsung can be affected by pressure groups and theirdecisions, frequent military intrusion in the country (Rose-Ackerman & Palifka, 2016). Thefirm can get involved in controversies and debates like it once did when allegations were thatit supported Grand National Party with 2.47 billion pre-election and other scandals likebribery. This lead to the 0consequent of media tainting Lee Myung-bak with corruptioncharges, breach of trust as he was bribed by Samsung for business profits and gain. Thepolitical scandal lead the imprisonment of heir to Samsung Lee to 12 years’ imprisonmentand a conflicting scenario within the company (Chen & Ann, 2016). The scandal also causeda strain in the brand image of Samsung worldwide.Samsung’s sale can also be affected by the damaged international relations with othercountries, for instance with United States can have a negative impact on its sales growth.Samsung had acquired the topmost position amongst the other smartphone selling companiesin U.S snatching away the position from Apple. According to reports Samsung also has alarger market share in the U.S market than any other company and in 2017 its market sharegrew from 32.9% to 36.2% (Chen & Ann, 2016). The strained relationship can thereforeseverely affect the market scenario of Samsung and its future prospects.
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