Analysis of Samsung's Strategies for Global Leadership

This report delves into Samsung's approach to maintaining a global environment, its strategies for achieving global leadership, and the competitive landscape within the smartphone industry. The analysis begins with an introduction to Samsung's vision and the leadership of Lee Kun Hee, emphasizing the company's growth and market dominance. The report examines Samsung's methods for navigating the global environment, including acquisitions and strategic diversification to maintain control over its supply chain and adapt to market changes. It also explores the strategies Samsung employs to become a leader in the smartphone industry, such as product innovation, differentiation, and understanding customer needs. Furthermore, the report discusses the competitive dynamics with Apple and other smartphone manufacturers, including how these competitors have transformed their strategies to challenge Samsung's market position. The report concludes by highlighting Samsung's commitment to innovation and its proactive approach to emerging technologies like 5G, aiming to solidify its leadership in the evolving market.

Running Head: ACCOUNTING 0
Management Accounting
Zackery King
Course title: Management theory and practice
Course number: MAN-3353
Semester: Spring 2019
Professor: Dr. Erick Aguilar
January 26, 2019

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Introduction
Samsung is the leading multinational organization that is successful in international
business particularly in delivering electronic appliances. The man behind the huge success of
Samsung is the chairperson, Lee Kun Hee. In 1987, Lee has taken control of Samsung and
after that sale has increased largely to $175 billion. Their main vision is that Samsung
becomes the world’s biggest electronics maker and number one smartphone market. He has
concentrated to assemble a pile of devices in a factory and gathered the staff members and
make them understand to deliver the good quality products. Their main goal was market
recognition as Samsung has attained growth in electronics and appliances but Lee has keen
aspiration and potential capabilities in the smartphone industry (Yun, Jeon, Park & Zhao,
2018). In the following, an effort has been made to discuss the Samsung approach towards
maintaining the global environment, strategies utilized by Samsung to become the global
leader, and other smartphone makers have transformed their strategy to compete with
Samsung.
Q.1 Describe Samsung approaches to maintaining the global environment.
Ans1. The global environment is a set of conditions and forces in the universe outside a
company’s boundary that influence how it operates and shape its nature. These forces
transform every time with present opportunities and threats. They have learned about
international management so that Samsung can diversify the new market as some personnel
goes through the exercise to learn about Korean culture and teamwork (Grobart & Lee,
2018). Their main approach to managing the international environment is to diversify into
those extents that gain no control. Samsung assists in controlling the global changing
environment, which was their acquisition of U.K. firm CSR in 2012. They lack in innovation
to produce those chips on their own and instead of buying these chips from CSR, Samsung

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purchased the whole organization and maintaining the total control of the process. They
continue to acquire all the factors that influence the production of their products and maintain
a great deal over the international environment. The global environment keeps on innovating
and it is unpredictable. It is very significant to comprehend and react to the changing business
as to grow and develop in the industry. Samsung should attain complete knowledge of the
business environment, which will make the business capable to develop and implement
strategies that are desired to recognize the extent of advancement, attain competitive
advantage, and manage accordingly for the upcoming challenges (Giachetti & Marchi, 2017).
In this, Samsung analyzes the global environment and implement the strategies, which
will determine the track of the business. They enter possibly in the international market by
initially maintaining itself as an outsourcing ability to deliver lots of upfront capital and mass
manufacturing expertise. After attaining sufficient understanding of the industry operates,
they compete with the companies; it formerly supplied utilizing its expertise and a large
amount of capital as a competitive advantage. Samsung eliminates its long-decade global
environment along with innovating leadership to adapt to the customers’ needs and
improving competition (Lee, Ho & Hsu, 2015).
These global environments in Samsung new business models enhance its stakeholder
concern reveals its corporate sustainability. The rise of low-priced Chinese products tends
Samsung to loose in manufacturing powerhouse. They are concentrating to prepare the
imminent action to transform the global environment. They took an immediate action to
enhance productivity efficiency by restructuring its business unit and non-core resources.
Samsung is getting on track by getting patents in significant extents such as internet of things
and mobile payment, which is identified to attain success and growth (Karmasin &
Apfelthaler, 2017). They are attractive as due to its focus on human resources. It is identified
as an international leader due to its inner capability to attain competitive advantage of the

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organization. It recruits a small extent of non-Korean people and engages a higher extent of
non-Koreans. Therefore, hurdles of cross-cultural communication occur when their personnel
feels they are not being appreciated and global environment transforms the managers to
cooperate in the future. It has utilized competitive advantages to develop its relationship and
maintain globally (Tsui-Auch, Chia & Liu, 2015).
Q.2What kinds of Strategies utilize by Samsung to become the international leader in the
smartphone industry.
Ans2. Samsung introduces the strategy, which has been overwhelming the market with an
excess of innovative products in a short span of time. It appeals to more market by delivering
a slew of smartphone and other gadgets to attract a wider market. This is a strategy to deliver
something to everyone. The strategies utilized by Samsung as Galaxy S line depends upon
the significant decision to utilize bigger screens. The Galaxy S screen was substantially
bigger than the normal Galaxy and another Android phone (Chiu, 2018). They have initiated
this strategy as in their perspective bigger screens provides a major unique selling proposition
as they have promoted Galaxy S II and Galaxy S III. It has been stated that the smartphone
comes in all proportions from 2.8 inches to 5 inches. When they bring the Galaxy S III,
research has been stated that for people in some market, the handset was too big, so they
initiated the strategy to generate the same handset with a 4-inch screen, which is named as
Galaxy S III mini. It is noted that getting the smaller device into the market, it took around
four to six months and immediately the market responds and the Galaxy S 4 came just after
Galaxy S 3 in next nine months (Cecere, Corrocher & Battaglia, 2015).
They have also introduced the strategy of differentiation, as they should utilize their
changed perception and militaristic discipline to control the smartphone industry in the
future. As, they have understood the needs and preferences of customers and delivered the

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right product at a lower cost than Apple, which is their main competitor. It has been stated
that Samsung has operated a supplier to Apple. They have also utilized the smartphone
business model that the Apple utilized and the time being Samsung has studied the Apple’s
iPhone and integrated its innovative features into the Galaxy S. The connections between the
two devices have carried both of the two companies for intellectual property rights in several
aspects of the universe. The corporate environment in Korea is much less reserved than it in
the United States. It has been stated that the virtual monopoly that Samsung is in Korea on
the smartphone industry does not increase the red flags, which provides a competitive
advantage in maintaining manufacturing costs down. Samsung always tries to provide a
technological upgraded product with high quality, better camera quality, and best storage
capacity to their customers. It has been noticed that customers were never attached to a
particular product; they always want differentiation in their products. Such a situation has
forced their technology manufacturers to generate new and innovative products that would
fulfill the needs and preferences of customers (Lee & Shin, 2018).
The customers and society loved when the mobile handset and other gadgets increase
the life comfort and minimize the time spent on easy tasks. Samsung has sparked in respect to
technology, fulfil the needs and preferences of the community, and generate the needs for
people. They have realized that it comes to an issue with the manner the product was
perceived. The bigger market that Samsung was not the same product that Apple produced.
This tends to some attractive demonstrations by Lee, which drives commitment to high-
quality products. They have delivered a vast and interesting product portfolio as a range of
products involving TVs, Refrigerators, laptops, smartphones, tablets, and cameras, etc. (Chen
& Ann, 2016). They have initiated the strategy, which has assisted to maintain the
commitment and trust on every product. Their strategy has led to become the international
leader in the smartphone market in the future (Lee & Malerba, 2017).

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Q.3 Is Samsung still the international leader. How have Apple and other smartphone
transformed the global strategies to compete with the Samsung?
Ans3. In the fourth quarter of 2013, Apple conveyed the 51 million iPhones at that time for
the organization. Samsung is still dominating the industry with 82 million smartphones for
the existing time. Samsung delivered large smartphones and on the other hand, Apple did not
deliver the big screen smartphones. It is stated that the larger phones sold effective well in
China as Apple released a similar model (Jakhar & Bharadwaj, 2018). Apple has also
introduced the strategy of releasing its own versions and generates the sales increase. It is
stated that Apple also cooperated with China mobile with 850 million customers producing it
in the biggest wireless provider in the universe. By initiation of the China smartphone,
industry and delivering the biggest market in the universe so that easy access to the nature of
the product that they wish. Apple has traded 76.8 million iPhones while on the other hand,
Samsung has acquired between 71 million and 76 million handsets. Apple is the leading
smartphone player in the market. They have become the international leader with a 43.2
percent share of the global market. The expansions and success have beat Samsung, which
lost 1.4 points over the same span of time and with a 28.6 percent market share. Additionally,
Samsung sales in the United States will probably stay at the normal level. Therefore, sales in
China have a drop down with a slight hope of recovering in the future (Argyres, Mahoney &
Nickerson, 2018).
Apple international strategy concentrates on generating an amazing product. Samsung
can become a master of all the smartphone in the near future. It has committed to be the
international leader in the first half of 2018 and Chinese technology has beaten Apple to
become the second biggest smartphone globally. The mobile business maintains to be
successful and direct its way into some other industry that needs a lot of expertise and capital.
They have predicted to develop solar panels, biotech, and competences in medical services,

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LED, and batteries for electric cars. It is to be noted that if Samsung MRI machines or
batteries do not take up the position it may create danger for the company (Dedrick &
Kraemer, 2017). Major Chinese brands such as Vivo, OPPO, and Huawei are concentrating
on improving the average selling services by developing the features such as bezel-less
displays, innovative designs, artificial intelligence, and dual cameras to attain success and
growth in the future. It increases the wide gap in the smartphone market and a lack of
marketing and sales capabilities. They should concentrate on delivering massive products
along with marketing in the part of the sponsorship, TV ads, and other activities. Lastly,
Apple has become the leading player as Apple iPhone is the most successful product of
Apple and they have strong customer loyalty and attained profitability and success in the
organization. They have better compete with Samsung and generate market leadership in the
near future (Paik & Zhu, 2016).
Conclusion
In conclusion, it has been stated that the smartphone industry is presently connected
with innovative products and similar to incorporate new technologies. It is the need of the
market to disrupt the present situation. Samsung is also the global leader in the smartphone
industry and has transformed the market with various products i.e. Galaxy II, III, and mini.
They are presently in a position to lead among companies, which can be the market leader
and game changer in the developing 5G technology, Samsung desires to carry a proactive
model, which can drive the organization to be the ‘first entrant’ into the new industry and
generate competitiveness. In this above discussion has been made on Samsung approach
towards the global environment, Samsung strategies to become the global leader, and how
have Apple and other smartphones have diversified their strategy.

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