Strategic Analysis & Implementation

This document provides a strategic analysis and implementation plan for Samsung, a multinational conglomerate. It covers the company's strategic direction, competitive edge, industry scenarios, mission and vision alignment, and strategic capabilities.

Strategic Analysis &
Implementation

Table of Contents
Introduction......................................................................................................................................1
TASK 1:...........................................................................................................................................1
The strategic direction that the company has followed in the past and the way in which
strategic thinking has developed within the past 5 years.......................................................1
Task 2...............................................................................................................................................2
Usage of framework for having strategic analysis.................................................................2
Discussion on competitive edge among direct competitors...................................................3
Industry scenarios faced by firm............................................................................................4
TASK 3............................................................................................................................................5
Whether their mission and vision statements are aligned to the demands of the marketplace.
................................................................................................................................................5
The company's strategic capabilities......................................................................................5
TASK 4............................................................................................................................................8
Discuss possible strategies that the company could follow to defend its core business........8
TASK 5............................................................................................................................................9
Recommendations..................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Introduction
The process associated with carrying out research with respect to company as well as
their operating environment for formulation of strategies is referred to as strategic analysis.
Basically, it involves formulation of strategic planning through which decisions can be made that
will lead firm to render their work in smooth manner (Clarkson, 2019). Strategic thinking refers
to thinking process that is being applied by individuals for attainment of set of goals and
objectives. This is used by organisation to formulate business decisions in precise and concise
way.
The conglomerate implies the firms who deal within multiple industries. Generally, they
are aggregation of various business entities those who works within different industries but under
single corporate group, this involves parent company as well as their subsidiaries. To understand
the concept the strategic analysis Samsung is taken into consideration that deals within
conglomerate industry. The firm was founded on 1st March, 1938 by Lee Byung-chul with their
headquarters in Seoul, South Korea. They deliver their services worldwide with products like
electronics, automotive, apparel, telecommunications, home appliances and many more. Along
with this services rendered by them are construction, hospitality, financial services, health care,
ship building, retail, etc. This report will provide an insight into different frameworks that can be
utilised by organisation to ensure that goals can be attained in precise manner.
TASK 1:
The strategic direction that the company has followed in the past and the way in which strategic
thinking has developed within the past 5 years.
Overview of the organisation:
Samsung company is a multinational conglomerate organisation in the south Korean and having
the headquarter in the Seoul. The company offers the various electronics product such as
television, refrigerators and mobile phone and tablets and different types of electronic device.
Strategic direction:
The company follows the different strategic management plan to growth their business
activities at the international market places. In the past years the Samsung have used the limited
growth strategies in the target market so that they can focus on their existing goods and target
the potential current market where they can earn the profits. They aims to create and provide the
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good quality of product and services to its customer and enhance the their smarter lifestyle in
the global market. the organisation also focus on offering the innovative product to its customer
by evolving their strategy from time to time . (DjatmiNoak. and Pradanab, 2016)
Under vision 2020, the Samsung has a mission to provide the core and advance
technology in their goods and services so that they can enhance their market share at the global
market places. They make effective strategies to capture the different market places by
understanding the competitive market conditions and make the profitable growth strategies. By
the 2023 they aim to achieves their annual sales to be around USD 500 billion by offering their
goods and creating the brand image in the target market. their main strategies is to have
creativity in their products and making profitable partnership with the another organisation so
that they can take the competitive advantages in the market and hire the skilful employees in
their management level.
With these strategies the company is able to grow their operational activities at the
international market. their strategies are always around adding value to the customer goods and
service so that business can expand to the large number of customer in the different targeted
segments. The strategic plan includes to become the number one in the information technology
and come down the top five global company. They are able to attract the best talents in their
organisation which helps them to perform the task and the activities in the most productivity
manners so that desire outcomes can be achieved within the set time period. the organisation
always inspire with their innovative technology in their goods and having attractive design for
their product which helps them to increase their sale in the market (Gozalvez,, 2015)the
company also contribute to the social responsibility which provide them to make the goodwill in
the market and people follow the organisation advise about the products. The continues
innovation in their goods helps them to capture the market and give the tough competition to the
another organisation in the international platform.
Task 2
Usage of framework for having strategic analysis
Strategic analysis is defined as doing research on firm along with environment in which
they are delivering their services. With reference to this aspect, it is necessary for Samsung to
take into consideration some crucial aspects they are: firm need to identify as well as evaluate
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data in context of their strategies, clearly specify internal and external environments that have to
be specified and for these different analytical methods must be implemented (Ateş and et. al,
2020). This will make it easy to have strategies that will enable them to ensure that they are able
to attain their goals as per desired standards and time frame. The Pestle can be utilized by
Samsung to analyze their external environment, it is specified below:
Pestle analysis: This provides firm with an insight into factors which creates on impact
on the ways operations are conducted by them.
Political factors: Samsung faced headwinds in South Korea due to conditions with North
Korea for this the firm has to take into consideration the political instability that prevails. The
stability of government is under threat due to sweetner this implies that Samsung needs to have
relevant strategies to accomplish their functionalities.
Economic factors: Samsung has started their services at international markets by
expanding their global footprint. But due to economic crisis purchasing power of customers has
declined. The Covid-19 is other major factor which has declined the economy of countries
thereby possesses impact on countries.
Social factors: Samsung have opted for Glocal strategy to meet the needs of emerging
markets and they have also ensured that with changing needs of customer they render their
services.
Technological factors: Countries are making significant investments to have latest
technologies through which they can have smooth services. Samsung is leading innovative and
technological firm as they are able to meet the requirements of big bang disruptions (Wulff and
et. al, 2019).
Legal factors: The firm needs to ensure that the country in which they are delivering
their services so that their services are not hampered. Samsung have faced penalties for imitation
of Apple’s iPad in past. So to avoid these situations it is important to abide to them.
Environmental factors: Samsung needs to ensure that products delivered by them satiate
ethical chic customers. Samsung has implemented pollutant management program and enforced
on chemical substance management policy for minimization of carbon footprints.
Discussion on competitive edge among direct competitors
SAMSUNG is the renown brand at international scale which is providing high quality
electronic products to its customers in vast range. The main competitors for this company are,
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LG, Sony, Huawei, Electrolux, HTC, GoPro, Xiaomi and Intel. Here, it can be said that for
dealing with the stiff competition the company mainly emphasizes on conducting regular based
research with the motive of bringing technological innovations so that they can easily influence
the interest of its customers’ and persuade them to make purchase from it so that they can easily
gain competitive edge within the same sector.
Industry scenarios faced by firm
In order to analyse the mobile phone industry in detailed manner, the respected manager
of Samsung have emphasised on making use of Porter’s five force analysis which have been
explained as below:
Bargaining power of Buyer: Influence of this force is high for mobile phone industry as
there are numerous of competitors available within the sector that offers similar kind of products
at almost similar prices (Qumruzzaman, 2017). This clearly shows that the buyers have lots of
options and can easily move to other company which can deliver them best product.
Bargaining power of supplier: Here, bargaining power of supplier for SAMSUNG is
relatively low as the company places bulk orders to the suppliers thus did not concentrates on
negotiating much with the brand due to the fear of losing their important client. Thus, supplier
does not bargain with the company at much level.
Threat of new entrants: The magnitude of this force is low for SAMSUNG as the
industry requires huge investment for establishing their business within the sector. Thus, it is
quite difficult for the new entrants to enter into the industry with effective financial investment.
Threat of substitutes: Threat of substitute is relatively high for the SAMSUNG as the
businesses interlinked with the same believes in introducing something new every for
influencing interest of customers towards them (Haroun, 2016). In order to tackle this
SAMSUNG is required to bring regular based innovation within the sector at regular basis for
maintaining their demand among customers.
Competitive rivalry: Competitiveness within the same sector is relatively high as there
are lots of companies such as Apple, LG, Sony, Huawei, Electrolux, HTC, GoPro, Xiaomi and
Intel dealing within the same sector. In order to gain competitive edge, SAMSUNG is required to
provide high quality products at affordable prices to its customers.
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TASK 3
Whether their mission and vision statements are aligned to the demands of the marketplace.
SAMSUNG is a well reputed company that is focusing on creating products and services
that will help in meeting customer needs (Kravchenko, 2017). This company is considering
demand of customer and market area in which it is offering its products. Mission and Vision
statement of respective company is mention below –
Mission of SAMSUNG
“SAMSUNG company mission is to devote its advance technology and employees in
order to develop superior products or services with the motive of contribution in enhancing
global society.”
Vision of SAMSUNG
“Vision statement of SAMSUNG company is to encourage and inspire global society
through its high quality products, design as well as innovative technologies in order to enhance
lives of individual in society and along with this contribution in creating new future with social
prosperity.”
Therefore it has been analysed that mission and vision statement of SAMSUNG company
is aligned with the market place demand and considering social benefits by offering its high
quality products.
The company's strategic capabilities.
Strategic capabilities can be describe as the internal strength or potential of business that
support in enhancing performance of organisation as well as growth business effective. It is
crucial for SAMSUNG organisation to analyse and determine its strategic capabilities so that
better decision for development of organisation could be taken (Habidin and Fuzi, 2016). In
order to evaluate strategic capabilities different model are considered such as SWOT analyse and
VRIO model.
VRIO analysis
This is consider as brilliant analytical technical tool that will support in determining
different resource of organisation which will support in gaining competitive advantage. VRIO
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analysis will assist evaluating different dimension of business which include value, rareness,
imitability and organisation. This model will help in analysing different resource and elements of
business on the basis of these dimensions. VRIO model in context of SAMSUNG is mention
below.
Resource Value Rare Inimitable Organization
Innovative
Technology
✓ ✓ ✓ ✓
Employee
capability
✓ ✓ ✓ -
Supply chain ✓ - ✓ -
Global Presence ✓ - -
 Value – This includes all those resources of company which is valuable to business as
well as help in conducting organisational task in more effective manner. This includes
innovative technology of SAMSUNG as this help creating high quality products.
Employees of organisation that are contributing their full efforts and skills to attain
business goals. Supply chain organisation that is significant in providing its products and
services to different part of the world. Global presence of SAMSUNG company is
valuable as this support in enhancing customer base of organisation as well as increasing
profits.
 Rare – It includes those resources of SAMSUNG company which is rare in market are
as well as support in gaining competitive advantage. Rare resources of respective
organisation includes innovative technology and staff members (Abashe, 2016). This
company is consider advance technology for performing organisational operation and
developing products. Skills and capability of employees is rare in market are which
enhance business activities.
 Inimitable – It consist of technology, employees and supply chain management of
SAMSUNG company. technology that is used by respective company is very advance
and it is not available with any other rival company. Capability of employees as well as
supply chain network of this company can not be copy by other organisation.
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 Organisation – It is essential for SAMSUNG to correctly organize and maintain its
innovative technology in order to perform business task and activities in more effective
and efficient manner.
SWOT analysis
This is significant model that will assist SAMSUNG company to analyse its strength,
weakness, opportunity and threats. SWOT analysis will help in taking better decision by
determining internal business environment and capabilities.
Strength Weakness
This is one of the world largest electronic
manufacturing company that is providing range
of products such as TV, LCD, mobile phone,
smart phone and many other products. Strong
manufacturing and production capabilities of
organization can be consider as its major
strength. SAMSUNG have large customer base
as it is providing its products and services all
over the globe.
SAMSUNG company is not able to meet with
the marketing strategies of rival company
Apple Inc. Lack of creative marketing
approach respective organisation is not able to
effectively promote its products and services in
better manner. Employees of respective
company is not able to research market trends
and customer requirement in order to
successfully meet with their demand.
Opportunity Threat
There are number of opportunities that is
available to SAMSUNG company and this will
support in enhancing or growing business in
effective manner. This organisation should
focus on creating and developing new and
innovative products which is different from
offering of rival company. Respective
company should train its employees so that
they can determine needs of customers and
conduct marketing activities in effective
manner.
SAMSUNG company is dealing in highly
competitive environment and it has major
threat form strong rival companies. This is the
major threat to this business.
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TASK 4
Discuss possible strategies that the company could follow to defend its core business.
Strategies can be describe as the framework support business to attain set objectives as
well as increase performance of business (Arcos, 2016). It is crucial for SAMSUNG
organisation to develop and create strong business strategy that define core of business and
support in organisational growth. In order to develop better strategies Porters Generic model is
considered.
Porters Generic model
This is effective model that will support in determining firms relative position in the
industry and develop effective strategies that will help in gaining advantage over other industries.
Different strategies for SAMSUNG company is mention below –
Cost leadership – This strategy refer as when organization is becoming low cost producer
of products in market. In this strategy company is offering products and services at low cost as
compare to other rival companies. This will help in attracting customers towards business. Cost
leadership strategy helps company is gaining edge over other organization by offering high
quality products at comparatively lower price. This will support in enhance sales of company as
well as creating strong relationship with customers.
Product differentiation – This includes strategy in which company is developing and
creating new and innovative product and services in order to meet with customer requirements.
Product differentiation is effective and efficient strategy that will help organization to influence
large number of customers towards business and satisfy their requirement by providing new and
different products. This strategy will help in gaining competitive advantage over other strong
companies in market.
Focus – This generic strategy is classified into two parts which is cost focus and
differentiation focus. Focus strategy is beneficial for organization when it is offering products to
niche market area (Anchor and Aldehayyat, 2016). SAMSUNG organisation is offering
products and services to customer all over the globe. It is targeting large customer base for
selling its products.
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Thus, product differentiation will be the most effective and efficient strategy for SAMSUNG
company that will define core of its business. This strategy of respective company will assist in
attracting more customer towards the innovative product offering as well as help in earning more
profits.
TASK 5
Recommendations
As per the above report there are several recommendations for SAMSUNG company that will
support in enhancing performance and growth of business. it is crucial for manager of respective
organisation to consider these recommendation while conducting business operation and offering
products and services to customers.
It is essentials for SAMSUNG company to follow differed rules and regulation that is set by
government and political party. There are various policies and legislation that will have impact
on business. By following all rule and policies respective company will be able to conduct
business operation smoothly and effectively.
SAMSUNG organisation needs to provide training and development to its employees. So
that they can enhance business performance and improve production of business. Training and
development program will support company increase efficiency of business to conduct different
organisation practices such as marketing, research, production, finance and many more.
Respective company should focus in developing and creating high products by analysing
demand of market place as well as requirement of customer in order to satisfy their requirements
by differentiation products. This will support business in gaining advantage over other rival
company and developing strong brand image of company in market area.
CONCLUSION
From the analysis of above report it can be concluded that strategies play crucial role in
performance and growth of company. It is crucial for business to analyse strategies and
implement them in successfully manner in order to attain growth. Internal and external business
environment of company will lead to have significant impact on strategy development.
Organisation needs to create strategies by considering different factors and demand of market
area. By offering high quality and innovative products or services to customer, organisation will
be able to develop business and create effective relationship with customers.
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REFERENCES
Books and Journals
Abashe, A., 2016. Influence of strategic leadership in strategy implementation in commercial
banks: a case study of Kenya commercial bank (Doctoral dissertation, United States International
University-Africa).
Anchor, J.R. and Aldehayyat, J.S., 2016. Strategic decision implementation in an
emerging market. Management Decision, 54(3), pp.646-663.
Arcos, R., 2016. Public relations strategic intelligence: Intelligence analysis,
communication and influence. Public relations review, 42(2), pp.264-270.
Ateş, N.Y. and et. al, 2020. The dark side of visionary leadership in strategy implementation:
Strategic alignment, strategic consensus, and commitment. Journal of
Management, 46(5), pp.637-665.
Clarkson, A., 2019. Toward Effective Strategic Analysis: New Applications of Information
Technology. Routledge.
DjatmiNoak, T. and Pradanab, R., 2016. Brand image and product price; Its impact for Samsung
smartphone purchasing decision. Procedia-Social and Behavioral Sciences, 219, pp.221-
227.
Gozalvez, J., 2015. Samsung Electronics Sets 5G Speed Record at 7.5 Gb\/s [Mobile
Radio]. IEEE Vehicular Technology Magazine, 10(1), pp.12-16.
Habidin, N.F. and Fuzi, N.M., 2016. Lean six sigma, strategic control systems, and
organizational performance for automotive suppliers. International Journal of Lean Six Sigma.
Haroun, I.M., 2016. Exploring Corporate Strategic Management and Global Expansion on the
Case study of Samsung Electronics. Archives of Business Research, 4(1).
Kravchenko, O., 2017. The Technology of the Strategic Analysis of a
University. Available at SSRN 3557909.
Qumruzzaman, M., 2017. Corporate business of Samsung mobile at Fair Distribution Limited.
Varma, G. and Ravi, J., 2017. Six Sigma in electronics company: A case study on
Samsung. International Journal of Research in Management Studies, 2(5). pp.12-25.
Wulff, E. and et. al, 2019. An Analysis on How Samsung Can Improve Their Environmental
Work by Adding New Ecological Transportation Method of Goods. Asia Pacific Journal
of Management and Education, 2(3), pp.55-66.
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