Samsung Business Strategy Analysis

STRATEGY

EXECUTIVE SUMMARY
The report has determined about a brief information about the innovative approaches and
implication of new strategies adopted by the management and working aspects of Samsung
which allows them to gain proper form of benefits and overall business achievements. It includes
the functioning of Samsung which is highly focused on utilising the entire available resources to
create the most innovative and advance form of products and services by reducing the level of
wastage made by their workforces. Along with this, the recommendation for Samsung are highly
aimed in increasing their overall productivity and profitability from their concerned market
sector. It is vital for them to gain high rate of return in order to maintain their sustainability. It
has been determined that the stakeholders of the company are their most effective assets that
helps them in growing and establishing the company in their concerned sector. In that context,
Samsung holds a tight control on valuable stakeholders for gaining the successive growth and
development of the business. Further, management of human resource is also must for which
motivational tools can be employed and through this business can enhance its overall
performance in the market. On the other hand, for better management of stakeholders it is
required for Samsung to know their actual need and requirement.

Table of Contents
INTRODUCTION...........................................................................................................................4
1. Critical analysis of organisation’s external environment and their impact while
implementing a strategy.........................................................................................................4
2. Critical analysis of internal environment of firm and their impacts on the strategic position
and in particular its strategy of innovation.............................................................................7
3. Evaluating the information gained from the factors addressed in the analysis................10
4. Summary on the implications for stakeholders based on the analysis of above information
..............................................................................................................................................12
5. Recommendations that would allow the organisation to adjust/re-invent or develop a new
strategy that takes advantage of innovation opportunities...................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Strategy is termed as the set of action plan which are to be effectively placed and
executed that allows the organisation to address every single desired objective. The process of
defining a strategy involves analysing business situation and assessing the elements of
formulating a set of action plans which helps the firm and their aspects to determine the
dimensions of strategies (Flor and Oltra, 2010). It is necessary that organisation should properly
attain the future possible results and accordingly ascertain the structure of a strategy.
In this respect, report is providing information in relation to the significance of
structuring a strategy and factors which are to be involved while implementing a set of action
plan in context of Samsung. Implementing better plans and strategies for sustaining in the
market is useful for the cited company which is one of the leading firms in IT sector.
1. Critical analysis of organisation’s external environment and their impact while implementing a
strategy
According to the study of (Fisher, 2004),an organisation needs to analyse their market
situation while designing a strategy and implementing it in their concerned sector. It has been
evidenced that the managerial aspect of an enterprise is highly focused on attaining the best form
of results which were proposed by them while creating a strategy. With an aim of achieving
greater form of results, it is crucial for organisation to ascertain the list of external factors and
their impact on the firm in order to formulate the action plan. On the contrary, research made by
Hagel and Brown, (2005) stated that the process of assessing factors enables an enterprise in

addressing the market requirements, available resources, present innovation, adaptability of
techniques, etc. that eventually helps them in making the strategies.
Similar to this, it was examined by the study of Grant (2010) that Samsung is also
required to formulate a specific and clear strategy that benefits them with greater form of
achievements and overall success. Samsung's purpose is to offer innovative and unique
innovation and technological advancement in their products which includes mobile phones,
laptops, desktop, smart watches and other related accessories. It is necessary for them to provide
better, creative and developed innovations in their products (Pehrsson, 2007). For this, research
team of organisation should focus their attention on assessing number of external factors which
are highly responsible to impact the market and business characteristics of Samsung. In that
context, following are factors which are present in the aimed market of Samsung and need to be
considered by them:
 Political factors – Samsung already considers political policy while formulating their
marketing plan as per the stated factor are very important for the betterment and progress
of company. Moreover, Samsung needs to follow all rules and regulations which are
generally imposed by the government or any political party of UK or any other country.
In that respect, Samsung also has to pay attention a funding the government in form of
large amount of income tax. However, it has been evidenced that government stability
and strong relations with other country's regulatory authorities help company in acquiring
larger part of markets and helps in accomplishing the targets (John, 2005).
 Economic factors – It has been evaluated that the economic stability and rising growth
of a region in which Samsung operates has a direct and significant impact on their
capabilities of earning profits from the business. Thus, economic stability among
concerned regions helps their residents to build high standards of living and address high
employment rates which results in increase in their disposable income. This eventually
helps them in growing their abilities and capabilities to spend more which creates a new
market trends and a great business for Samsung (Allio, 2006). However, rising
implications and upliftment in tax rate can be the reason of affecting market and business
situation for Samsung (Kourdi, 2010). Along with this, impact of inflation and alteration
in the rate of foreign exchange is also regarded as influential elements for the company.

 Social factors – This factors includes increasing development and improvement in the
lifestyle of an individual, the present demographic influences, likes and dislikes of
customers, etc. These are determined as social factors that impacts the business of
Samsung in a positive as well as in negative sense. For instance, being a Korean
company, Samsung is highly preferred by the Chinese and Korean buyers. But, in
Europe, Apple is generally preferred by people. It is because they have a trust on their
home based businesses. In addition to this, Samsung strategy to launch budgetary
products and gadgets in the developing countries has gained them in increasing their
overall output and ability to earn more revenue (Li and Solis, 2013).
 Technological factors – Samsung is engaged in IT sector where company has to
implement new techniques and bring creative innovation in their products and services
offered to their customers. It is crucial that regular advancement, changes and up-
gradation must be in their product line so that it will be easy for company to differentiate
it with other firm’s products (Lindelöf, Dettwiler and Löfsten, 2006). It has become the
challenge for company and their aspects for addressing opportunities of gaining more
attraction and maintaining it for long time period. However, Samsung has maintained
Illustration 1: Samsung takes lead in China's smartphone market in 2012
(Source:Richards, 2014)