Analysis of Samsung's International Business Strategy and Challenges

This report provides an executive summary of Samsung's international business strategy. It delves into the company's strategic management approach, examining both internal and external factors influencing its global operations. The report assesses the changes in Samsung's strategic position, evaluating how the company responds to internal and external challenges in various international markets, including China and India. It critically discusses the sustainability of Samsung's competitive advantages, such as its competencies in quality, synergies, and internationalization. The analysis covers organizational resources, leadership, and cultural aspects that impact Samsung's strategic decisions. The report also highlights Samsung's responses to challenges, including its new management strategies focused on product development, supply chain management, and marketing. The report concludes with a discussion of strategic options available to Samsung to maintain and enhance its global market position.

INTERNATIONAL
BUSINESS STRATEGY

EXECUTIVE SUMMARY
International business strategy is a program and activity to attain the objective at global
level. Whole business enterprise operates its business at international level then it requires
effective and distinctive strategy to compete with rival and develop its own strong position in the
market. In this following study, proper knowledge about the strategic management has
developed. Internal and external analysis of business environment assist to analysing business
condition and develop the new strategy for organisation.

Table of Contents
INTRODUCTION...........................................................................................................................1
Assignment......................................................................................................................................1
1. Assessment of the changes in the strategic position of business organisation...................1
2 Evaluation about how company responded to the external and internal challenges...........5
3 Critically discussion about the sustainability of competitive advantage...........................6
4 Development of strategic option available to Samsung organisation................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
In the present era, every business organisation requires effective tactics and strategy in
order to survive in the competitive environment. Business strategy is a tool and attribute which
assist firm to complete with rivals in the market and develop their own competitive position. In a
simple word it can be said that business strategy is a long term planning which aid in attaining
the objective of firm. International business strategy is a program and activity to attain the
objective at global level. Whole business enterprise operates its business at international level
then it requires effective and distinctive strategy to compete with rival and develop its own
strong position in the market. The following project report provides a depth knowledge and
understanding about the international business environment and strategy through which
corporation can achieve objective at global level. The following report defined internal and
external component of business environment. Furthermore, sustainability of competitive
advantage of the Samsung company has been also addressed in this report. It is a public limited
and multinational electronic company. It is the world largest manufacturer of mobile phone and
smartphone fueled by the popularity of its Samsung galaxy line of devices. This project defined
that how cited firm impressively develop its international business strategy and attain its
objective in an effective manner.
Assignment
1. Assessment of the changes in the strategic position of business organisation
Strategic management is a important procedure for developing planning, monitoring,
evaluating the performance of business for attainment of the Objective. In this manner. Business
firm can analysis the environment of business and develop competitive strategy to get success in
the market. Generally strategy management involves analysing cross functional business
decision to implement in the business process. With assistance of proper and systematic strategic
management planning, firm can analyse the internal and external strength and weakness,
formulate action plan, executive action plans etc.
A Samsung electronic is the world largest corporation of the Samsung group, a south
Korean which founded in 1938. it has more than 236000 employees in 79 countries and most of
the employees based outside of south Korea. The cited firm deals with the electronic good like
1

hard drive, clips, flash memory, lithium ion batteries, smart phones, LCD, printers, television,
personal camera, home appliances etc. Samsung delivers the various electronic goods and
products in the various 79 countries (Staake, Thiesse and Fleisch, 2012). Samsung is the world
second the largest information technology company by revenue after apple (Doeksen and Symes,
2015). It earlier products were electronic and electronic appliances including television,
calculator, refrigerators, air conditioners and washing machines. Company have major aim is to
provide the high quality of electronic good to customer and meet their expectation. It wanted to
acquire the large number of market share and profitability in the global market. As Samsung is
dealing with various 79 countries in the world so at international level its strategic management
function has extremely strong and it has high competency.
At the international level, there are various kinds of key changes in the strategic position that is
external and internal environment. Samsung is the world second largest company which dealing
with 79 countries in the world. At international level, strategic changes may faced by the cited
venture due to the various internal and external components. At global level, Samsung may face
various kind of changes which are as follows-
 Organisational resources- At the international level, organisational resources can highly
changed due to the changing business environment. Organisation resources includes
human resource, financial resources, technical equipment, machinery etc. While Samsung
deals at international level then strategy management influence by the organisation
resources. In the different country, company have faced the issue related to the
2

organisation resources such as human resource, financial resources, machinery etc. As
per the Samsung case, Samsung considers on the high capability, productivity and
efficiency by which it successfully delivers the high quality of customer good in the
international market. Samsung believes on its internal strength and focus on the
efficiency and capability through which it effectively attains the target in the global
market. On the other hand in the china market, Samsung was losing money in the china
because Chinese research and development conducted research in specific area where
work could be done better or cheaper locally (Houdet, Trommetter and Weber, 2012).
 Competency- Competency is another major component in the business internal and
external environment. It refers to the capability, ability and competitive advantage of the
company through which firm can develop its strong position in the market. As per the
give case study of Samsung electronic, Samsung corporate revitalisation initiative that set
a new course for the company. The three strategic pillar to new initiative that set a new
course for the company that is quality, strategies, internationalisation. With assistance of
these three competencies, firm can effective perform at international market and gain
competitive position. In the Indian market, Samsung product had been significantly
adapted for the Indian market because it used localised innovation to come up with
multiple model fast to fit local need and different customer segment. In the Indian
market, Samsung have highly skilled and qualified engineers which provides their best
contribution in order to develop the competitive product of Samsung. In the India,
Samsung research and development department was the global hub for feature phone and
simultaneously innovated on three mobile phone platforms in order to develop over 25
different model. Thus, it can be said that in the different country, Samsung have effective
competency in the different international market (Jaber and et.al., 2015).
 Capabilities- Capability is another major component of the business internal and external
environment. In every business enterprise mostly requires the capability because by use
of this company can perform effectively in the market and earn high market share. In the
given case of Samsung, firm has attained high speed in new product development by
placing multiple bets on technologies with effective trajectories and a high potential ROI
for research and development investment a process is known as parallel development.
Cited firm learned the importance of speed while competing in the semiconductor
3

industry. As per the give case. Cited firm is world number one marketer of mobile phones
with 21.4% of the world largest market share in the second quarter of 2015.apple is
number two with 13.9%.
 Leadership- Samsung have highly skilled and qualified employees whose gives their best
efforts to attain the organisational objective. At international level, while firm operates its
business then it has faced the various changes which affect its strategic changes.
Leadership is one of the major internal component through which workforce of the
organisation can manage and maintain its business activities and function. It refers to the
process under which leader manage, motivate, encourage, control and monitor the
performance of employees and influence them for attaining the objective. In the different
country, the process of leadership can also influence which affect the strategic position
(Adar and et.al.,2016). As per the given case, At the time of lee leadership, Samsung
have become an iconic global brand which is known for its high quality and innovative
product. In the china market, there is very low skilled labour as compare to India because
in the Indian market company have effective skilled engineer whose given their best
contribution to attain the objective. At the global level, Samsung company plays effective
leadership because it has lead to various other electronic corporations in the world. Other
electronic company has also merged with the Samsung so as It can be said that company
playing effective leadership function in the global market.
As per the case it can be said that in the India Samsung have effective staff member and manger
takes effective strategic decision in different countries. Thus, its leadership process is effective in
every country through which company can able to develop its strategic position in the different
country. It effective leadership and management focus on the quality and synergies led Samsung
to become a global technology leader. In the India market, leader have effective decision making
power who were rewarded for innovation and risk taking with individuals bonuses.
 Culture- Culture refers to the value, beliefs, ways of attraction, attitude etc. In other word
it can be said that culture refers to the cumulative deposits of knowledge, experience,
beliefs, value, attitude, regions, notions of time, roles, spatial relations, concepts of the
universe and material object acquired by the people in the course of generation. Effective
culture develop effective outcome in the organisation. In the context of business, culture
plays a very crucial role because only culture is an attribute which assist in developing
4

health relationship and environment at workplace (Bahadir, Bharadwaj and Srivastava,
2015). With assistance of effective culture, employees can effectively manage and
motivate for higher performance and productivity. In the given case scenario, in the
different countries in the world, Samsung developed an executive oriented culture based
on strong discipline, loyalty, ethics and a can do spirit. Company has adopted different
culture in the different countries .For instance, in the Indian market, company have
focused on recruiting high potential employees and attracted Korea top talents 12% has
PhD and MS degree.
2 Evaluation about how company responded to the external and internal challenges
As per the above discussion it has been ascertained that there are various kinds of internal
and external component of business environment which affects the Samsung company while it
operates its business in the different countries. Major issue faced by company of difference
among the leadership, culture, human resources, competencies, capabilities etc. In the India and
china market, Samsung have faced different strategic challenges due to the differences.
However, company have strong compatibility and capability through which it has successfully
competed with its diversity and changing situation. While during the period of key factor
influenced to the country then company have adopted effective strategy and action to overcome
these strategic challenges. Following are some major strategies and action of the firm to respond
the internal and external challenges over the period concerned-
 The Samsung company have major strategy of new management that is three strategic
pillar quality, synergies and internationalisation. In the 1998 300% equity ratio has debt
by the Samsung company and management of business enterprise have major objective to
deliver the high quality of electronic good and services to customer at global level
(Bahadir, Bharadwaj and Srivastava, 2015) . In the first year there are huge gap between
the goal and reality but Samsung owner Lee never loses hope and its new management
developed by considering speed of market, new product development, supply chain
management, marketing and human resources.
 In order to fill the gap between the reality and objective in the international market,
company major focus on these factor humans resources, supply chain management,
marketing, new product (Doeksen and Symes, 2015). By considering these components,
firm have developed its own new management and strategy in the different country.
5

 In order to face the challenging situation in the emerging market that is china and India,
Samsung considers on its unique organisational capabilities, propelled the company to
success in both countries and such strategy which its rival can not achieve. The company
have invested in manufacturing facilities in Mexico, Thailand, Malaysia, Indonesia,
china, Brazil, Vietnam, India, Russia, Egypt etc.
 The Samsung was one of the market leader in the product categories in the Indian market.
One major reason of this success is that India used localised innovation to come up with
multiple model fast in order to meet the needs and wants of the local customers. The
major reason is that it have high skilled sand qualified employees which gives their best
contribution in the research and development activities.
 Another success factor in the India market is that Samsung have ability to manage it's
supply chain management system. Organisation collaboratively working in the global
level with other business enterprise and deliver the high quality of electronic products
and services to customers.
 In the china country, Samsung is number one mobile phone company and it is a global
leader in TV in the china market. Samsung is one of the major company which deal
with electronic goods like Television, mobile phones etc.
 Samsung provides the high quality of product and services in an appropriate price so as
customer can gain the full satisfaction.
 In the china market, Samsung created direct sales stores to circumvent the cities and has
had difficulty penetrating the more rural.
3 Critically discussion about the sustainability of competitive advantage
As per the above discussion it has been ascertained that there are various effective
strategy and action taken by the Samsung in the emerging market that is china and India in order
to compete with rival and gain the effective outcomes. Thus, it can be said that Samsung have
effective strategic management through which in the international market it has effective
compete with rival and develop its won position. Following are some major competitive
advantage of the Samsung electronic-
 Cited firm is world number one marketer of mobile phones with 21.4% of the world
largest market share in the second quarter of 2015.apple is number two with
6

13.9%.Company have major competitive advantage is that it focuses on the three major
thing that is pillar quality, synergies and internationalisation.
 Another major competitive advantage of the Samsung is that it have effective research
and development programs in the India and china through which it designs and create
effective and attractive capabilities which distinctive it from its competitors.
 It has strong manufacturing and marketing capabilities and long strongest relationship
with retailers in the china and India that provide a steady sales channel for its product n
(Jaber and et.al., 2015). In the India used localised innovation to come up with multiple
model fast in order to meet the needs and wants of the local customers. The major reason
is that it have high skilled sand qualified employees which gives their best contribution in
the research and development activities. Innovative on multiple platforms allowed
Samsung to create its own market data by conducting trials to see which model success in
the marketplace.
 In the Indian market, Samsung have highly skilled and qualified engineers which
provides their best contribution in order to develop the competitive product of Samsung.
In the India, Samsung research and development department was the global hub for
feature phone and simultaneously innovated on three mobile phone platforms in order to
develop over 25 different model.
4 Development of strategic option available to Samsung organisation
As per the above discussion it has been ascertained that Samsung have various
competitive advantage related to its internal strength, competency
and organisational resources. By these competitive advantages, company have successful survive
in the international market that is china and India .Following are some strategic option through
which company can ensure its success and sustainability into the future in the international
market.-
 Human resources- The major strategic option is it's highly skill employees which gives
their best contribution to attain its objective. Human resource is one of the best strategic
option through which firm can gain high competitive advantage in the future and
implement the effective strategy to gain the high market share in the international market.
By providing effective training and development opportunity to employees, firm can
encourage and motivate them for high productivity and profitability in the emerging
7

market. In order to develop the competitive advantage, company required high qualified
and skilled employees so as they can perform in well manner and attain the objective
within the time.
 New product development- This is one of the bes strategic option for the Samsung
through which it can gain the effective success in the international market. It have
effective research and development programs through which its employees can gives
their best contribution to research the innovative thing and develop some creative
technology. By effective research and development programs, company can attain
effective success in the china and Indian market. While company produce the new
product and services then it will acquire the new customer in the market. This will assist
in improving business performance.
 Supply chain management- This is another major important strategic option for the
organisation through which firm can improve its
CONCLUSION
From this project report it has been concluded that strategic management plays a very
crucial role in the international business through which company can easily face the challenging
situation and compete with rival in an effective manner. It has concluded that Samsung have
various low end products but these were positioned higher than local competitors product with
similar brand. In the china market, Samsung created direct sales stores to circumvent the cities
and has had difficulty penetrating the more rural. It has been also concluded from this report that
The three strategic pillar to new initiative that set a new course for the company that is quality,
strategies, internationalisation. With assistance of these three competencies, firm can effective
perform at international market and gain competitive position.
8

REFERENCES
Journal and books
Liu, Z., 2015. Stategy and progress on treament of pelvic fractures. Zhongguo gu shang= China
journal of orthopaedics and traumatology.28(5). pp.389.
Grünig, R. and Kühn, R., 2015. Global Environmental Analysis. In The Strategy Planning
Process. Springer Berlin Heidelberg.
Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis.
Grünig, R. and Kühn, R., 2015. Strategy Planning Process. In The Strategy Planning Process.
Springer Berlin Heidelberg.
Bull, J. W. and et.al., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis
of the ecosystem services framework. Ecosystem Services. 17. pp.99-111.
Niederwieser, D. and et.al., 2016. Hematopoietic stem cell transplantation activity worldwide in
2012 and a SWOT analysis of the Worldwide Network for Blood and Marrow
Transplantation Group including the global survey. Bone marrow transplantation. 51(6).
pp.778-785.
Adar, E. and et.al.,2016. Comparison of methods for sustainable energy management with
sewage sludge in Turkey based on SWOT-FAHP analysis. Renewable and Sustainable
Energy Reviews. 62. pp.429-440.
Mor, S., Kaur, K. and Khaiwal, R., 2016. SWOT analysis of waste management practices in
Chandigarh, India and prospects for sustainable cities. Journal of Environmental
Biology. 37(3). pp.327.
Pavlou, P. A. and Stewart, D. W., 2015. Interactive Advertising: A New Conceptual Framework
Towards Integrating Elements of the Marketing Mix. In New Meanings for Marketing in
a New Millennium. Springer International Publishing.
Bahadir, S. C., Bharadwaj, S. G. and Srivastava, R. K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal
of International Business Studies. 46(5). pp.596-619.
Leitner, J., Meissner, H. and Martyna-David, E., 2015. The Debate About Political Risk: How
Corruption, Favoritism and Institutional Ambiguity Shape Business Strategies in Ukraine.
In EU Crisis and the Role of the Periphery. Springer International Publishing. pp. 3-19.
9