Approaches for Achieving Globalization: A Case Study of Samsung's Entry into the Indian Market

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The essay is prepared to focus on the various approaches undertaken for achieving
internationalization or globalization, i.e., making an entry into the Indian market by Samsung.
There are various factors responsible for managing globalization and this ensured a proper entry
for Samsung in the Indian market to enhance its customer base, generate higher revenue and
attain competitive advantage in business as well. There are various ways by which the
development of global and international strategies will be possible such as the development of
shared vision and mission along with goals and objectives to be achieved (Samsung.com 2018).
The environmental assessment and scanning are done along with the analysis of internal and
external environment for ensuring that the right global integrative and market entry strategies are
implemented. The alterative foreign market entry strategies were also assessed to ensure
targeting the right market segments comprising of customers and enhancing the organizational
capabilities to maintain a proper balance or fit between the internal entities of the organization.
The PESTEL analysis will be done here for demonstrating the political, economic, social,
technological, legal and environmental factors contributing to the business management
(Deresky 2017).
Samsung India Electronics Limited also stated as SIEL has been a subsidiary of the
Samsung Electronics Company Limited and is one of the major manufacturer and producer of
high tech instruments. The company is also one of the major leading producers of consumer
electronics that has focused on attracting the right market segments in India and become the
major player in the home appliances and information technology market. SIEL also imported
high quality televisions and audio systems at first alongside other major players within the
consumer electronics industry (Ruigrok and Van Tulder 2013). The company has found it
convenient to enter the Indian market because of its focus on innovation of the products, great

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marketing strategies, advertising and promotional activities, quality management and managing
the after sales services and widespread dealer network.
Samsung has entered the Indian market in 1992 while SIEL was incorporated in the year
1995 with more than 50 percent at stake by launching consumer services and consumer
electronic products and services. This has been an influential factor that has contributed to the
major success within the Indian market. The growth and success in the turnover of SIEL while
making an entry into India is mainly dependent on the impact of Korean ways or approaches of
managing business in India. The analysts of the market have focused on product innovation,
aggressive marketing approaches and great network management for establishing itself as a
successful business in the Indian marketplace (Cavusgil et al. 2014). The first segment in the
market included CTVs, Video players, audio instruments and thus the market share was 4.2
percent in the two million CTV market in India. It was a dominant approach, which brought
favorable results for Samsung and gradually the company started to grow with the introduction
of wide range of other products and services in the Indian market segments.
Samsung Group was founded as a trading company in Japanese Korea by Lee Byung-
chul in the year 1938 an with passing time, the company slowly managed to diversify into areas
such as processing of food, securities, retail and insurance services too. The company entered the
electronics industry in the year 1960 and slowly the areas of electronics were focused on to drive
higher growth, success and profitability along with competitive advantage as well (Verbeke
2013). The company has its headquarters in Samsung Electronics building in Seoul, South Korea
and the areas served by the company are all over the world. Since the year 1990, the company
has largely increased the scopes for globalization and focused on internationalization activities,
furthermore transformed the entire electronics industry by bringing mobile phones and semi-

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conductors too. These have been major sources of income for the organization and thus Samsung
has one of the largest global brand value with nearly 500000 employees and a revenue of more
than US$305 billion (Patra and Krishna 2015).
The analysis of Samsung in the Indian market is all about the major reasons for making
an entry into the Indian market and the strategic partnerships formed. Tone of the major reasons
for which, Samsung decided to make an entry into the market is to increase the customer base
and start global business through the implementation of effective internationalization strategies.
The focus was on creating a positive brand presence worldwide and increased the customer base,
which could generate higher revenue and allow the company to attain competitive advantage in
business as well. The Dunning’s model, also known as the eclectic paradigm was introduced by
John Dunning that prioritized on the advantages that could be obtained through
internationalization strategies by exploiting the major resources and using the skills and core
competencies effectively to ensure successful global business management (Kim and Tung
2013). Samsung’s main motive was to bolster play in India’s consumer electronics market and
thus with the introduction of televisions, audio and video systems, mobile phones and other
electronic gadgets were followed by, which assisted in gaining a good position within the Indian
marketplace.
The Dunning’s model proposed internationalization theories to facilitate ownership
advantages, location advantages and internationalization advantages too. The ownership
advantages included gaining competitive advantage, which has been possible for Samsung with
the introduction of wide range of electronic items targeted at the price conscious and quality
conscious clients. The products were a success and a sustainable position as gained by Samsung
within quick time. Through globalization, the company established itself in multiple countries