Samsung Electronic Case Study: Business Level Strategies

Samsung Electronic Case Study 1
Business Level Strategies

Samsung Electronic Case Study 2
Introduction
Samsung Electronics Company is Korean based company that provide a huge range of electronic
products all over the world. The journey of the company towards design excellence has started in
the year 1993 (Jung, 2014). In the same year, Lee visited the store in Los Angles, USA and
found that the company’s products are not that much attractive in comparison of other
companies. This report will entail the five forces of porter for the purpose of shaping the strategy
because these five forces formulate the structure of the profit of a company by deciding in what
way economic should value it. There are some strategies will be mentioned under this
assignment in order to bring better understanding regarding the case study. This will elaborate
the step which could have been taken by the company to attain the competitive advantages.
Five forces of Samsung Electronics
Bargaining power of Suppliers (low)
The bargaining power of suppliers in the context of Samsung Electronics is low as the company
is its own supplier of most things. Along with that, it is the company that occurs to be its own
supplier for raw materials. By considering the suppliers, it has been found that the Samsung
company provides huge income to the suppliers as it is the multinational company and their
supplier cannot move from one place to another (Baloh, Uthicke, and Moon, 2008). Hence, the
company makes the strategy in which the suppliers of the company need to follow them which is
continuously observed by the company.
With respect to the case study, it has been found that the strategy of the company was effective
in such way company redesigns the system by making changes in the products which could be

Samsung Electronic Case Study 3
done with the help of the suppliers. This kind of activity increased the profit of suppliers by
which they did not even think about to switch.
Bargaining power of Customers
It has been analyzed that the buyers have enough sufficient power when it comes to bargaining.
They have information regarding the similar products due to the latest technology by which they
compete with other brands not only in the price but also in the quality of the products.
Bargaining power of customers of Samsung Electronics is high as customers have a number of
factors on which they have the tendency of bargaining. There is a number of brands that
exploring the huge in advertising and marketing so that new customers can get attracted towards
the product.
In the context of the case study, it has been analyzed that the electronics industry has the intense
competition on which the technology changes the product simultaneously. It is one of the shapes
that shape competition and it is necessary for the company to keep focusing on the changes in the
technology and adapt the same. Nevertheless, the company was stood at a high-quality position
in selling Television and there are two markets of Europe and North America that are famous for
new technology and design in Samsung’s Electronics.
Threat from Substitutes
For Samsung Electronics, almost any kind of products of electronic provides the same features to
the customer and all products are in the upper level of abundance with the same cost and highly
competitive. There is a number of competitors of Samsung Company that provides the same
product at different prices to the customer of Samsung Electronics which pose the threat to the
brand of Samsung (Cardoso, 2017). In conjunction with, there are various local and international