Samsung Electronics Corporation Limited Case Study Analysis

Management
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1
Identification of the role
My role in the case study of the Samsung Electronics Corporation Limited is a participant. A
participant will exchange ideas and thoughts with other participants in the case. I will review the
problems of the company and provides feedback about the products of the company. I will ask
questions and interact with others to discuss the problem solutions. New issues and methods can
be brought by me that I believe are essential for the company. My role as a participant is to
expand my views on the problems. I will be engaged in discussions which would provide more
understanding about the case and also offers new approaches. A participant has the chance to
express his arguments by the case. The participant plays a vital role in the case by providing
knowledge and thoughts regarding the problems (Baganzi, Shin & Wu, 2017). I can challenge
the opinions of others, which I may feel irrelevant, in a pleasant manner.
Identification of the Problem
The Galaxy Note 7 debacle had brought down a harsh situation on the company. Samsung
maintained the top position in 2016 but, its global market share started to fell below 20 percent.
Due to the misstep of Samsung, Apple took the top position of smartphone and also took 18.3
percent of market share in 2016. In addition to this, OPPO and VIVO had also achieved 100
percent growth over the years (Hassler, Pearce & Serfass, 2018). The selling price of
smartphones started to fell, and the revenue of the company decreased due to the debacle of
Galaxy Note 7. This debacle provides Apple iPhone to own 91 percent of profits as well as
increase its sales.
Samsung had an intense competition with Apple Company. Samsung received a litigation file
over the technology patents by Apple. Samsung had to pay 548 million dollars to Apple for
infringement of patents. Huawei, a smartphone maker, sued Samsung in 2016 for violating its
patents. Galaxy note 7 had a fatal flaw, and the battery cells caused excessive heat which leads to
the exploitation of battery (Saadah, 2018). The overheating batteries had caused damage to the
goodwill of the company as well as its customers. The company had to face short-term financial
losses during the recall of the product.

2
Analysis of using theoretical tools
Porters Shared Value
Based on shared value initiative Michael E. Porter stated that the purpose of the organizations is
to create shared value not only to gain profit. This will enhance the next wave of productivity
and innovation growth in the global economy. In relation with the case study of Samsung
Electronics Co., Ltd. the company faced the problem of battery manufacturing error related to
Galaxy Note 7 Pro that created excessive heat causing the battery to explode (Serra, Font &
Ivanova, 2017). Therefore, on 11th October 2016, Samsung announced to cease all sales and
production of Galaxy Note 7 Pro. Based on this situation it has been observed that the health of
the society and the competitiveness of the organization are mutually dependent. The theory of
shared value states that the company must recognize and capitalize on these connections between
societal and economic progress that possess the power to redefine capitalism and unleash the
next wave of international growth (Andelin, Karhu & Junnila, 2015). Moreover, Porter described
that economic rationality is regarded as one of the significant tools of smart management with
faith in growth and innovation, where Samsung needs to adjust its capitalism to some extent.
Therefore, Samsung can create shared value opportunities by enabling the development of a local
cluster, redefining productivity in the value chain and reconceiving markets and products (Jones
& Wright, 2018).
Reconceiving products and markets
Reconceiving products and markets creates shared value in various ways, for example, by
improving the nutritional intake of the customers and by expanding the consumer base of a
company. This would, in turn, serve as a forceful driver of innovation and put a positive impact
on productivity. Organizations have the potential to be more successful in generating and
marketing solutions for the problems related to society (Moczadlo, 2015). Thus, new markets
and new needs will provide opportunities to Samsung to innovate, differentiate and grow new
products as per the needs of the customers.
As stated by this theory Samsung must design services and products to address the needs of the
society related to health, safety, financial security and many more. Rather than meeting the needs
of the customer, Samsung must also think in terms of improving the lives of the customers