Strategic Management of Samsung Electronics
Added on 2020-05-16
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Running Head: Strategic Management SAMSUNG ELECTRONICSStrategic Management
Strategic Management 1Samsung Electronics is a South Korean multinational brand majorly known for producingconsumer electronic goods. Its headquarters is situated in Seoul and they earned USD $174billion in 2016 and Lee Kun-hee is the current chairperson of the company. The company wasfounded in 1938 by Lee Byung-chul. Initially, company was operating as a trading company butafter three decades, Samsung Group diversified into sub categories such as textile, insurance,retail and securities. After developing an effective image in these industries, organizationventured into the electronics industry in 1960s after analysing the scope of emerging electronicsgoods in the market. Company is capable enough to build effective and efficient electronicappliances as per the consumer’s expectations with this; they had developed an effectivegoodwill as innovative consumer electronics Goods Company. Samsung Electronics is alsoengaged in producing mobile and smart phones. With the help of Android operating system, theyhad established a significant place in the market. This led the company to gain the leadingposition in the smartphone industry. In past years, big companies like Nokia and Apple Inc. wasfeared and to maintain their presence in the mobile phone industry, they amended theirmanagement and certain other crucial strategies. This essay will include the positive as well asnegative aspects of the company. Along with the strategic management practices, this essay willalso focus over three theoretical concepts to strategic management (Samsung Electronics, 2018).
Strategic Management 2Samsung Electronics is continuously in news since last 2-3 years and this leads to publicity in theglobal market. Sometimes, company stands in the news due to its negative incidents andsometime due to positive ones. One of the negative incidents which occurred in the company wasblast in their smartphone series. Samsun Galaxy Note 7, one of the popular devices in the smartphone industry built of advanced features and innovative designs. This was the 7th phone in theNote series and prior to this, all phones produced by the company were up to the customer’sexpectations. It was launched in August 2016. Specialty of Galaxy Note 7 was Gorilla Glass fifthseries, water and fire resistance and a high definition screen. Along with these features, Note 7was the most advanced phone of that time which was specially built on the basis of consumer’sfuture expectations and with advanced technology. Organization promoted this product in orderto increase the demand amongst the target audience and their anticipations got increasedreviewing the features and design of the phone (Hill, Jones & Schilling, 2014). Competitors ofSamsung also prepared to maintain their image in the industry and for the same; they adoptedaggressive promotional strategies for promoting their products in the market. With these types ofactions, Samsung Electronics’ goodwill could be measured in the mobile phone industry. WhenSamsung launched their first Android phone in the market, it affected various mobilemanufacturing companies. Apple Inc. is one of those feared organizations who amended itspromotional, advertising and management strategies in order to maintain their distinct image inmarket along with increasing demand of their smartphones (Keller, Parameswaran & Jacob,2011).
Strategic Management 3With the effect of launching of Galaxy Note 7, technological experts gave high ratings and thisled the company towards attaining another milestone. Prior to this, Galaxy S6 was launched andit proved to be the most crucial device for the organization. This device made various recordssuch as highest revenues, large number of units sold, etc. This was the appreciable moment forthe Samsung and this lead the company to acquire a big share in the mobile phone industry. Withthe introduction of Galaxy Note 7 and due to positive responses from technology experts,demand for the phone gets increased and it was increasing rapidly. Reviewing the success of thisdevice, organization announces the launching date of further phones like Note 8, S8, and the like(Kapferer, 2012). This lead the company towards a strong position in the market along with this,organization became capable enough to gain their desired outcomes. Launching of galaxy Note 7in 2016 was a strong move from the company and this increased the scope of mobile phone. Tomatch up with the level of technological factors used by Samsung and the features fitted by the
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