Samsung Corporation: Business Strategy, Performance and Future Outlook

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Samsung Corporation
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Samsung Corporation
Introduction
Samsung is a South Korean organization with its headquarters in Samsung Town, Seoul.
Samsung is a multinational conglomerate comprised of numerous businesses. Samsung
Electronics Company Limited is part of the Samsung Group. This company has its headquarters
in Suwon, South Korea. Samsung Electronics majors in electronics and information technology.
The company has establishments for assembly in 80 countries around the globe. The company
employs more than 300,000 workers and has amassed market cap top of $350 billion (Stickler,
2013).
Samsung Electronics is a leading manufacturer of electronics and electronic components.
Some of the items are mobile phones, smartphones, laptops, tablets, and household components
such as television sets, home theaters, video players, refrigerators and kitchen appliances. Some
of the components are hard drives, flash drives, lithium ion batteries and memory chips
(Samsung Company, 2018).
The electronics industry has major traits that define it. There is high degree of innovation
across the industry with major players reinventing their products. There is much effort and
investment put into product design. Technology has led to increased demand for smart products.
Smartphones and smartwatches have widely reached across diverse markets. Smart TVs are now
on the rise. There is high demand for electronics in general around globe. One drawback is that
electronic products tend to have short life cycle before technology evolves (Lasinskas, 2016).

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Competitive Business Strategy
The business strategy of Samsung is orchestrates to aid the strengthening of the
company’s competitiveness and profit structures. Focus is based on production of premium
products. The business strategy that Samsung Electronics employs involves high degree of
flexibility. This is mainly due to the changes that occur in the external business climate. The
company therefore is able to make dramatic changes according to the world trends. Samsung has
prospered on the back of efficient and effective reading of the market. The company observes the
market progress and is able to learn from other competitors (Dudovskiy, 2017). The corporation
comes up with products that are replicated or innovated based on the products of other brands in
the market. The products are manufactured with similar important features but with some basic
alterations such as screen size.
Samsung has a catalog that features extensive product range. The company is invested in
new product development which results in numerous product types available for customers.
Samsung Electronics provide their products in particular divisions: Consumer Electronics (ME),
Device Solutions (DS) and IT and Mobile Communications (CE). This development is enhanced
by R & D centers of the company located in more than 35 areas across the world (Samsung
Electronics, 2016).
Samsung has benefited from integration of its business strategy with market gaps which
takes advantage of opportunities that can be gained. In this way, the company engages the
market through addressing a particular need in a specific place. The choice of new marketplaces
is based on achieving economies of scale. The regions are mostly characterized by inexpensive
production factors and the company is able to sell standardized items. In general, Samsung

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Electronics displays preference of cost leadership over strategic differentiation (Samsung
Electronics, 2017).
Samsung Electronics Performance
Samsung has faced a number of issues that have affected the company. There have been
some periods of turmoil but for the most part the organization has seen positive business
outcomes. In the recent years, the company has seen its earnings increase steadily. In 2017,
Samsung was able to achieve its best ever performance, posting quarterly operating profits
$13.02 billion. It was listed the top company in the year. Samsung Electronics’ market value
surpassed $360 billion. Close to end of the year, its stock price and preferred stock rose by
3.89% and 4.24% respectively to record numbers (Samsung Newsroom, 2018).
This performance has been driven by innovation and development of wide range of
products. Samsung have manufactured a myriad of quality products which customers have
embraced. The products are able to reach many people due to the company’s market presence.
Samsung Electronics The company has been aggressive in pursuing market trends based on how
their observation of the market. This has helped the company stay abreast in technology and
developments which has greatly promoted their sales. Samsung Electronics use a large share of
its revenue in research. 5.7% of the revenue it amasses in research activities. Combination of the
company’s market research and innovations have made the Samsung Electronics a leading
organization in the industry (Samsung Newsroom, 2018).
Samsung Electronics is part of the conglomerate that is Samsung Group. This gives the
entity a great supply chain and distribution system. There is cost advantage in the company