Comprehensive Analysis of Samsung's Global Business Environment

This report provides a detailed analysis of Samsung's global business environment, examining the major forces shaping the industry. It utilizes frameworks such as Porter's Five Forces and Porter's Value Chain to assess the competitive landscape and Samsung's internal operations, specifically focusing on the Samsung Galaxy A72. The report also explores the changes in Samsung's micro environment using PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors. It discusses the impact of these factors on Samsung's future business strategies and market position. The analysis covers key aspects such as competitive rivalry, supplier power, customer bargaining power, and the threat of substitutes and new entrants. The value chain analysis examines inbound logistics, operations, outbound logistics, marketing and sales, and services, along with supporting activities like procurement, human resource management, infrastructure, and technological development. The PESTLE analysis considers the political, economic, social, technological, legal, and environmental factors influencing Samsung's global operations and expansion strategies. The report provides insights into the challenges and opportunities Samsung faces in the global market and its strategic responses to these dynamic changes.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Major forces shaping towards the global business environment and explain the changes occur
in industry....................................................................................................................................3
Discuss the changes that occur in Samsung’s micro environment in future...............................7
CONCLUSION................................................................................................................................9

INTRODUCTION
Global Business Environment undertake three various components with itself that depict the
actual condition of the international market considering the fundamental way of several forces
that helps in shaping the Dynamics of global trade. In terms of this Global Business is widely
undertake the integrated enhanced environment that consider technological advancement
intercultural effectiveness and competitive factors to carry forward conducting international
business. For the moon Global Business Environment is divided into both external and internal
components considering several frameworks in terms of identifying the market condition and
circumstances (Kasemsap, 2016). Global Business also undertake the international traders
regarding the growth and success of business that need the business people and organisations in
terms of involving them within the globalised world. Hence involving the global environment
tends to become beneficial for an organisation which is quite risky and consider several changes
with it. To carry forward the study Samsung is considered which is the South Korean
multinational mobile phone company headquarter in Samsung town Seoul. It tends to deals in
various affiliated businesses under the Samsung brand and also the largest South Korean brand
which is founded in 1938 as a trading company. Along with this report tends to cover the
prominent major forces that helps in shaping the Global business environment for the respective
industry and also identify the changes occur in recent years. It also discusses the changes occur
in the micro environment of the company regarding its future.
MAIN BODY
Major forces shaping towards the global business environment and explain the changes occur in
industry
Porter’s Five Forces
This Framework is useful in identifying the whole business environment and examine the
competitive market for company. It is helpful for company to make and develop their own
business strategy by examining the various conditions. It has 5 prominent factors in which three
of them belongs from external forces and remaining belongs to internal forces. These courses are
useful in terms of organising significant market research for the company and develop the
suitable product considering the needs and preferences of customers on the grounds of their
qualification which is useful in accomplishing and acquiring the whole market area (Bejtkovský,

Rózsa and Mulyaningsih, 2018). In terms of Samsung they have effective presence in the global
market and also increase it in the Asian continent with the help of its new product named Galaxy
a 72 and for this the significant forces are examined on the grounds of threats and opportunities.
 Threat of new entrant: The new entrants that occur in the business environment has
major impact on the overall business environment and industry that is helpful in
identifying the performance of Samsung. It is influenced by various significant forces in
terms of analysing the intensity of external components that are developed on the basis of
high cost for the brand development of business and also considered the economies of
scale as these factors are quite low in terms of Samsung. Along with this undertaking the
business condition of Samsung it is quite difficult to compete prominently on the high
cost of brand development as organisation has significant customer base and repetition in
the market (Boshyk, 2016).
 Bargaining power of customers: Buyers are undertaken as the influential components in
the industry within the mobile phone industry as their demands preferences and
requirements as the major impact on the company. The customers of Samsung are
directly influenced by their performance and sales of company and the switching cost is
high regarding the Purchase volume as Samsung has various competitors in the market
including Apple one plus Google and many more. Hence to eliminate the sitting cost it is
important for the company to offer their products on reliable rates and give qualitative
features to their potential customers.
 Bargaining power of suppliers: By undertaking the overall business performance of
Samsung That depends on the suppliers and the reliability considering the features and
qualitative offerings of Samsung. Within the mobile market and industry there are many
suppliers who can offer raw materials of electronic gadgets at a very low prices and
Samsung can make deal with them (Manning, Kannothra and Wissman‐Weber, 2017).
Furthermore, this factor impacts the availability of materials by undertaking the need and
requirement of company. For this the bargaining power of suppliers is low because the
presence of other suppliers is high the intensity of external factors is moderate for
Samsung by undertaking the forward integration and the size of players considering the
supply level for them.

 Threat of substitute: Considering this factor Samsung has the influence of substitute
product within the luxury phones and the biggest substitute of Samsung is Xiaomi,
Oneplus, Apple and many more. Furthermore, the intensity of the product and other
substitute commodities is moderate to high and it can become threat for the company as it
has major impact on the profitability and sales of product. Therefore, the switching cost
of customers is high on the grounds of availability of substitute commodities and quality
features and performance of substitute product in the market.
 Competitive rivalry: Samsung operates its business functions within the competitive
market that has major impact on its competition in the mobile phone and gadget Industry
that leads to other competitive allergy among the various organisations considering
external factors that has significant intensity regarding its performance and also
responsible for the strong forces within the competitive rivalry (Čepel and et. al., 2018).
Along with this it leads to include other competitive factors and organisations that has
major impact on the running and functioning of company including the new entrants but
they are low aggressive towards the company but also acquire the market area of
Samsung as the sitting cost is high in nature.
Porter’s value chain
The porter’s value chain analysis is the sum of various system within an organisation that
are helpful in making money and also develop with various subsystem which is useful in
developing products and services. Hence it tends to include the prominent procedure from start
to finish. In terms of this it is classified under two prominent activities that are primary and
supportive and they also have their prominent elements that are described in terms of Samsung
Galaxy A72.
Primary activities
 Inbound logistics: Inbound logistics tends to undertake warehousing inventory control
get the raw materials for Samsung which is required in terms of making finished
products. It also represents the relationship of company with their suppliers considering
the quality of product that depend on the affective relationship (Perry-Kessaris, 2016)
(Prajogo, 2016). In terms of Samsung Galaxy A72 inbound logistics tends to undertake
the storing of products and getting it from the manufacturer by undertaking their plan in
terms of selling with the profitable and effective margin.

 Operations: Operations undertake the effective procedure that is helpful in converting
raw material within the finished product that is easy to sell to their customers. It also
undertakes the changing of inputs that are ready considering the desired outcome and
result. In terms of Samsung Galaxy A72 There tends to undertake adding labels and
branding of the products that are helpful inputting value to the particular commodity.
 Outbound logistics: It leads to undertake the significant activity that are helpful in
distributing the finished outcome and product to their potential customers which is
undertaken as the outbound logistics (Kasemsap, 2016). In regard of this it includes the
delivery of product by undertaking the distribution system and storage from both the
internal and external environment that has major impact on the shipping of Samsung
Galaxy A 72. In regard of this it leads to defect the storing of products for shipping to the
actual shipping.
 Marketing and sales: It depict the significant strategies that are developed in terms of
taking the market area and also enhance the visibility to target significant customers with
the help of effective pricing promotion and advertisement. Along with this these activities
are organised by Samsung in terms of convincing their customers to purchase its product
named Samsung Galaxy A72 that include various significant features and promoted with
the help of advertisement on the social media and other channels like email list for the
email marketing.
 Services: It considered those services and factors that are helpful in maintaining the
product in terms of improving the customer experience (Lewis and et. al., 2017). In
relation with Samsung Galaxy A72 it leads to development in anus considering the
proper charge of the specific mobile phone and also provide suitable facilities like
replacement repairing and warranty to their potential customers.
Supporting activities
 Procurement: It leads to undertake the merger and defective acquisition of various
resources and its inputs that are helpful in enhancing and developing the significant
product which are offered by the suppliers. It leads to undertake the overall process in
which company obtain significant raw materials considering the bar getting in prices with
their suppliers (Krajnakova, Navickas and Kontautiene, 2018). It is also linked with the

inbound logistics as due to this Samsung try to procure its raw materials and commodities
in terms of the reselling it.
 Human resource management: It is related with hiring and retaining employees that are
beneficial and useful for company in terms of accomplishing their desired goals and
objectives with the help of effective marketing and selling of commodities within the
dynamic and frequent changing market. Hence the managers of Samsung always need to
manage Their employees and fulfill their requirements in positive manner which is
helpful for them to smoothly conduct primary activities and also developed the
motivation level of employees (Gaganis, Pasiouras and Voulgari, 2019). It leads to
inspire them to perform in an effective manner and undertake effective hiring on the
grounds of requirements for marketing operations logistics and many more.
 Infrastructure: It leads to depict the physical appearance of these stores of Samsung that
leads to support and allow significant functions and departments to maintain their
operations. It also undertakes the prominent accounting administrative and legal
functions that are required on the grounds of primary functions.
 Technological development: In regard of Samsung the technological development is
helpful to organize effective research and development considering their product named
Samsung Galaxy A72 that undertake the designing and manufacturing of prominent
techniques and automating processes by undertaking that active technology of Samsung
in an innovative and unique manner. It is helpful in attracting large number of customer
base and also develop effective opportunities for the company (Bidault and et. al., 2018).
Hence for this Samsung needs to work more in terms of eliminating the technological
cost by moving from the hardware storage system considering the technological
development.
Discuss the changes that occur in Samsung’s micro environment in future
PESTLE Analysis:
This Framework is useful to identify the changes in business environment and conductor
when an organisation wants to expand its business in terms of overtaking New Market area
regarding the enhancement of profitability and sales. For the mod effective identification is
organised for Samsung and particularly for its product which is Galaxy A72 in terms of making

its International presence to enhance its market share. It is helpful in identifying the related risk
factor that has major influence on the company that are mentioned as under.
 Political: This factor has major impact on Samsung considering its Global presence as
Samsung is a reputed company and because of the complex and tough competition
among Apple and Samsung it and it towards the major involvement of government in
other countries. For instance, the American government try to stop the influence of
Samsung in the Euro Zone by blocking the market of Samsung in Europe and its nearby
places (Hickmann, 2017). On the other hand, in German Samsung was forced to take
back its Galaxy tablets and in South Korea it leads to stop corporate because of the
political differences between the Government of South Korean and Japan.
 Economical: Samsung operates its business in more than 58 Nations and has heavy
investment towards its infrastructure in every country regarding its physical appearance.
Moreover, in South Africa they tend to purchase a land in which they develop huge plant
to develop the product that helps in achieving and gaining more profitability in future and
also manufacture their products in Africa that leads to develop Employment opportunity
and give rise to the South African economy. Therefore, this plant is estimated to employ
around 3000 individuals.
 Social: Social Trends of the business environment for Samsung is constantly changing in
terms of introducing new innovative technology and services that has major impact on
the needs and requirements of the economy of company and other Nations. It depicts the
major increment and attraction towards the technology that become the basic means of
communication and by this Samsung tends to find gap to enhance the life of people
(Bejtkovský, Rózsa and Mulyaningsih, 2018). Along with this it is challenging for the
people to use the products of Samsung in an effective way particularly it’s tablet phones
and for this they need to be more educated to use the tablet as it is the major challenge for
the society.
 Technological: Technological factors grow rapidly and develop regarding achievement
of prominent success and growth over the years and has major impact on the things
which people do. Technology tends to change the way of doing business and include
social media in terms of developing sustainable strategy for their growth and success of
business. In terms of this Samsung find the prominent way of doing business by

developing structure to the pocket and launching Galaxy A72 and other phones that are
more featured and convenient to the people in terms of Technology.
 Legal: As per this factor the Government of UK considered the consumer protection act
in the operations of company that have negative impact on the running and functioning of
Samsung as due to this, they have a tendency of dumping the low-quality product in the
world to increase their profit (Boshyk, 2016). Along with this there are strong labour laws
in United Kingdom that has negative impact on Samsung to operate in UK and tends to
open big factory that can become challenge for them to exploit the people in United
Kingdom and earn maximum profitability.
 Environmental: According to this factor Samsung tends to make effort in terms of
developing and governmental friendly products by eliminating the impact on
environment bites whole procedure from getting the raw materials transportation
production and many more that has major impact on the function design quality price of
the product (Manning, Kannothra and Wissman‐Weber, 2017). For this Samsung take
initiative as people has the option to return phone and collect the entire Free charge as a
customer reward and the returned food is transported towards the recycling facilities for
scrapping.
CONCLUSION
Therefore, by considering the board discussion it is identified that Global Business
Environment is the concept that undertake several factors with it in terms of identifying the
condition of company. In regard of this environmental analysis is helpful to identify the several
competitive forces and risk factor for the company with the help of various frameworks. For the
more it is also discussing the prominent changes occur in the micro environment of company in
future.

REFERENCES
Books and Journals
Bejtkovský, J., Rózsa, Z. and Mulyaningsih, H.D., 2018. A phenomenon of digitalization and E-
recruitment in business environment. Polish Journal of Management Studies, 18.
Bidault, F and et. al., 2018. Willingness to rely on trust in global business collaborations:
Context vs. demography. Journal of World Business. 53(3). pp.373-391.
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Čepel, M and et. al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling. 78. pp.275-292.
Hickmann, T., 2017. Voluntary global business initiatives and the international climate
negotiations: A case study of the Greenhouse Gas Protocol. Journal of Cleaner
Production, 169, pp.94-104.
Kasemsap, K., 2016. Analyzing the roles of human capital and competency in global business.
In Project Management: Concepts, Methodologies, Tools, and Applications (pp. 2190-
2218). IGI Global.
Kasemsap, K., 2016. Examining the roles of virtual team and information technology in global
business. In Strategic management and leadership for systems development in virtual
spaces (pp. 1-21). IGI Global.
Krajnakova, E., Navickas, V. and Kontautiene, R., 2018. Effect of macroeconomic business
environment on the development of corporate social responsibility in Baltic Countries
and Slovakia. Oeconomia Copernicana. 9(3). pp.477-492.
Lewis, H and et. al., 2017. Design+ environment: a global guide to designing greener goods.
Routledge.
Manning, S., Kannothra, C.G. and Wissman‐Weber, N.K., 2017. The strategic potential of
community‐based hybrid models: The case of global business services in Africa. Global
Strategy Journal. 7(1). pp.125-149.
Perry-Kessaris, A., 2016. Global Business, Local Law: the Indian legal system as a communal
resource in foreign investment relations. Routledge.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics. 171.
pp.241-249.