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Running Head: Samsung Global Marketing Operation1Samsung Global Marketing Operation
Running Head: Samsung Global Marketing Operation2Introduction to the CaseThis is a case study discussion of Samsung Electronics Limited where we will look at the keyissues and challenges that Samsung has been facing over the period of time in its globaloperation. The purpose of this case study to provide answers to the question of “How can Samsung be asuccessful global brand?” The case study analysis includes discussion on existing issues andchallenges, solutions available for the challenges, selection of the best possible challenge andfinally, the development of strategies to implement the solution. Key Issues or Challenges Samsung Electronics ranked as the NO.1 Valuable brand in 2003 by Business Week’s annualmagazine. Samsung is among few entities all over the world who has market valuation $300billion USD. It is also the only South-Korean company to be listed in Top 100 brands of theworld. The company covered the journey of making black and white television to the smartphone, smart watches, and many Artificial Intelligence (AI) elements. This company alsooffers other electronic items such as refrigerator, oven, computers, VCRs etc. it has gone fordiversification for expanding its operation. (Baloh et.al,2008)When an organisation goes for expansion, certainly some issues and barriers will fall in place.The challenges may be with respect to product, service, operation, marketing, humanresource, environmental pollution, technological limitation etc. For Samsung, currently, these are some of the key challenges they are facing to compete inthe market-
Running Head: Samsung Global Marketing Operation3In the international market, the regional competitors are taking market shares of the companyand rapid changes and market penetration of mobile industry. Justification- The first challenge is major because of the growth of Chinese and other regional mobilebrands such as Oppo, Huawei, Asus, Apple, Vivo, and Motorola. As the countries are lookingfor keeping the revenues in the homeland, they have started promoting inland product andservices than outsourcing, this is bringing more and more mobile and electronic companies tostart their operation and then go for global expansion. It is making the buyer’s bargainingposition stronger to force Samsung to keep the profit level as lower as possible. Alternative solutionsAlternative Solution-1-Product Differentiation focused strategy Samsung traditionally was having a cost-focused strategy where the minimisation of cost wasgiven more importance than anything else. Then, the motive was to sell the best qualityproduct at lower or the best in the industry but in future, the strategy will shift to productdifferentiation strategy. (Urbinati et.al, 2017) Product differentiation strategy is a generic strategy that aims at making the differentiationin product and service offerings for the market. The differentiation is not only the addedfeatures but also includes disruptive innovation or radical innovation in the existing industry.(Moon et.al,2011)Pros of the alternative-1-
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