EduQual Diploma: International Marketing Management Report - Samsung

This report provides a detailed analysis of Samsung's international marketing management, focusing on its strategy within the Chinese market. The report begins with an overview of Samsung's international marketing approach, highlighting its focus on targeting specific markets and leveraging competitive advantages. A PESTEL analysis is conducted to evaluate the political, economic, social, technological, environmental, and legal factors influencing Samsung's operations in China. A SWOT analysis is then performed to assess the strengths, weaknesses, opportunities, and threats associated with a proposed new product idea: an emergency drone service. The report also includes a marketing plan outlining how Samsung could promote this service in China, utilizing a marketing mix approach and digital marketing strategies. The report provides insights into market research, product planning, and outlines the key components of an effective international marketing strategy for Samsung. The report concludes with a PESTEL analysis of Samsung itself, considering the internal factors influencing its business operations. The report is a response to an EduQual Diploma in Business and Marketing Management assignment.

Running Head: INTERNATIONAL MARKETING MANAGMENT
Samsung organization
International Marketing Management
Report
Student name
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INTERNATIONAL MARKETING MANAGMENT 1
International marketing strategy
One of the biggest reasons for selecting international marketing strategy is to target specific
market. This is also considered as exploring the foreign market in order to generate a unique
character. It includes all type of important elements like anticompetitive benefits, operation
cost, haggling and so on (Samiee and Chirapanda, 2019). At present business market
environment has become very complicated and in such case every organization operating in
this business market is in need of support in the form of international market which helps in
generating more profit (Hadjikhani, Lee and Park, 2016). Samsung organization was
established in 1938 by Lee Byung-Chul as trading company. This company has diversified
their business in food processing, electronics, insurances and other segments. In 2017, it has
also entered in chip manufacturing which opened their door for information communication
technology. But as per Samsung organization it is not easy to develop perfect international
approach, it requires lot of efforts and research. With the help of international marketing
strategy, Samsung Company is able to combine the both competitive advantage of native
company as well as competitive advantage of international company in the form of joint
venture (Iblasi, Bader and Al-Qreini, 2016). These local partners are well aware about the
government policies and trade rule which helps organization to expand their business in
foreign soil.
Samsung is operating in most of the countries but when it comes to revenue generation China
is considered as one of the most supportive foreign soil for business. Current GDP of china is
$ 14 trillion which ranks them at number second in the world after US. In addition, China is
having population of 1.43 billion which offers them first rank in population. At present China
is offering perfect business environment which is essential for the effective business. In
addition to this China government is also offering great amount of support to the trade in the
form of their reformed trade policy.
PESTEL analysis of China
Political
China has attained permanent member in Security Council and is having largest land area in
the world. In addition, china is among the top powerful countries in the world. At present

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China is running under Communist Party which is headed by Xi Jinping and is offering a
stable political environment (Rahman, 2018). This party has created much reform in their
trade policies in order to support business because they are aware about the impact of business
in GDP. China political environment is offer cheap labour along with improved infrastructure
which is considered as most important aspect from business point of view. In addition, this
trade policy reform has helped them in attracting almost $ 139 billion FDI towards china
market. This investment can be considered as third largest FDI investment on global level.
Economic
At present China is considered as second economy giant in the business world after US in
terms of GDP. In addition, it is also considered as country having largest purchasing power
background due to their huge population structure. The country has transformed their
economy pattern from center to market base pattern which helped international business
market to expand (Inter china, 2018). But at the same time Country is struggling on the base
of inequality, fast urbanization which has impact the lifestyle of the common people.
Availability of cheap labour is actually helping manufacturing companies to generate more
revenue which is directly increasing the economic stability of the country.
Social
China is considered as huge consumer market due to its large population for any products it
may be cars, mobiles, designer cloths and so on. Huge foreign investment has increased the
wage level of the population which has directly increased the purchasing power of the
individual (Market research report, 2018). This can be considered as important symbol to
expand business in order to generate profit. In addition China literacy rate is about 96.4% and
government is focusing on reducing poverty in the country in order to bring individuals on
same scale. In recent years, company has made tremendous progress in terms of development
as well as in revenue generation in order to eliminate poverty.
Technology
China is birth place of some of biggest giants such as Alibaba, Tencent and other companies.
At present china is rapidly progressing in technology because they have changed their

INTERNATIONAL MARKETING MANAGMENT 3
traditional approach towards innovative pattern (Blue Ocean University, 2018). They have
eliminated all the possible restriction related to the field of innovation by encourage people
with the mode of education and practical examples. This support environment has helped
china to improve their technology which is the current demand of this changing business
environment in order to remain sustainable. China is continuously focusing on research and
technology and it establishing environment for business market.
Environmental
Development in China has directly impact the natural environment in the form of water, air
and industrial waste. In fact, many NGO are considering China and India responsible for
increasing global warming due to their continuous release of green gases in the environment.
In this situation, government has promised that they have taken this issue seriously and has
introduce all major action which are essential for environment safety in order to support Paris
agreement which was established for environment safety.
Legal
China has introduced many new laws related to employees in order to offer right to protect to
them so that company cannot exploit these section of population based on their economic
position. China government has established Labour contract law 2007 under which no
agreement will be valid until the company will sign a written agreement with the labour
related to employee benefits. Recently China has adopted free trade policies with some
countries which is considered as most important aspect for business relations.
Idea generation for new product
As per the study, it has been seen that medical service sector is becoming most profitable
sector among business market. In this situation Samsung company must offer the most
innovative medical service in the form of emergency drone which will help to eliminate the
changes of risk related to the personal life in the case of emergency (Watts et al., 2019).
Emergency drone will be helpful In the case of heart attacks in which person required rapid
health assistance. With the help of technology company will build such an innovative drone

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emergency which will carry CPR health service along. With help of drone, this health service
can be eliminating the changes of getting trapped in the traffic.
SWOT analysis
Strength
Strength of this idea is that it will make use of aerial space which will offer them free traffic
service (Phadermrod, Crowder and Wills, 2019). This will increase the speed of the
emergency health care by which life of person can be saved with the help of CPR services.
This service will be Samsung to position their better image in the minds of potential customer
which are part of the community.
Weakness
Weakness of this idea is that Samsung has not experience related to medical segment and it
can create challenge situation for the company during initial period (Hou, Cao and Liu, 2018).
In addition, there are more changes that this idea can be copied by other organization too by
exploring profit associated with this segment.
Opportunities
Healthcare service segment is in great need of technology advancement and being a
technology giant Samsung Company has the best opportunity to convert this idea in to
practical aspect in order to make things happen (Taghavifard et al., 2018).
Threats
Already many established companies are offering similar kind of service in other form and
has years of experience in medical sectors.
Market research and product planning
China is having the largest population in the world and among this population almost half of
the population is suffering from heart related issues. Increasing pollution has increased this
percentage on continuous base (Li et al., 2018). In addition increase in traffic has generated
more difficulties related to emergency healthcare service. In this situation, Samsung

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emergency drone service will help in eliminating the changes of stuck in traffic by making use
of Ariel space. This will offer speed healthcare service along with cost advantage.
This idea will be promoted in market of China with the help of digital marketing tool by
which company will be able to cover around more than half population of China which is
constant touch with social media platforms such as Facebook, Instagram as well as you tubes.
Company will upload relevant pictures related to their new service along with teaser videos
which will help the company to position their new idea in the minds of potential customer in
cost effective manner.
Outline marketing plan
In this situation Samsung company will make use of marketing mix to promote this idea in the
minds of China population related to emergency drone services. In product part, company will
offer population the most innovative emergency health service which they have not imagined.
One of the most appealing part of this product will be it will make use of aerial space in order
to provide rapid health service (Hu et al., 2018). In price part, company will try to make this
health care service affordable for common individuals in order to take benefit of this
emergency drone health care service which will increase the customer base. In promotion part,
company will make use of digital marketing because it will offer two types of benefits.
Another is effective price and another is rapid reach (Chen et al., 2018). In place part, this
service will be offered near remote areas where health service is not well structured.
Emergency drone health service is free from any kind of environment pollution and therefore
company will not face any kind of issue from government as well as community side. In
addition, Samsung will take care of all the rules and regulation associated with drone services
in order to provide strength to this idea
PESTEL analysis of Samsung
Political

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It has been found that markets in which Samsung company operators are conductive in nature
for its business operations along with some small irritants in some of international country
markets just like China, India and so on. It can be said that overall political market of foreign
nations are in favor of Samsung operations. But at the same time, Samsung has faced some
strong winds related to changing political environment within their native country because of
tension generated between North korea and South korea. In this situation, every company has
to bear political instability due to threat related to war (Frue, 2018). In addition to this, this
company is also facing political pressure from African as well as Latin American countries
because their government structure is on continuous change. But Samsung Company is well
able to handle these political instability with the help of their experiences along with their
advance communication device technologies which limits risk factors.
Economic
In this dimension, Samsung is in rising phase because most of the developing nations are
offering enough business space for Samsung to expand their global foot print. But at the same
time this dimension is also creating worry situation for Samsung because at present
international market is going through economic crisis which are impacting the buying power
of consumers. This has forced to decrease the profit margin of the company in some of the
emerging markets (Frue, 2018). In fact unstable economic of some developing nations has
forced the Samsung to introduce new changes in their overall strategies in order to remain
sustainable in the business market. Samsung Company with its remarkable strategies has
learned to adjust in these situations which have made them top global company in the business
market in terms of revenue as well as strategies. They have explored possible changes in the
current economic and has strategize their business expansion accordingly. They have adopted
aggressive push strategy to attain lead in emerging market on international level.
Social
Samsung is considered as prime South Korean family company which indicates that it is
going to follow their Korean values despite of their global presence in the market. Hence, in
order to operate in international market, company has to adjust themselves in some of the
local conditions. In this situation despite of international company, in most of the times it has

INTERNATIONAL MARKETING MANAGMENT 7
to act like local company in order to support emerging market. In addition to this, company
has tailored their products as per the changing taste of the consumers in order to remain at the
top position in the business market. While operating Samsung make use of both socio cultural
aspect as well as lifestyle of the potential target market as per the operating country to
maintain their strong presence.
Technological
After Google and Apple Company, Samsung is listed among the most innovative company in
the world. Samsung Company is in advantage situation related to their innovative technology
drive which is essential for sustainability in this competitive business market. This has helped
the company in maintaining their position at the top in innovation curve with a clear vision
setup for their rivals (Dudovskiy, 2017). This has helped Samsung in creating gap with in the
competition between them and rivals which are operating in the same market. Now, company
is also focusing on Niche market in which they are directly in competition with Apple
products which are known for their product design and quality which will trouble the
company. Samsung through their experience learned that sometime reach fast to customers is
not enough, it is important to maintain the basic aspects which leads to success.
Legal
In this dimension, company has faced lot of issues because Samsung was blamed for copying
design of Apple Company for which they has to pay heavy penalty. This has pushed the
company position below in the eyes of public perception and many countries has altered their
trade laws because of this incident in order to protect ethical business governance such as US,
China and so on.
Five forces analysis of Samsung
Industry competition
In this aspect, Samsung is competing with other rival multinational companies like LG,
Redimi, Oppo, Nokia and Motorola. In recent time it has entered in the market of Apple
which has increased the complexity of the competition. Although, Samsung is able to create
their huge customer base for their products but still Samsung cannot overlook the threat

INTERNATIONAL MARKETING MANAGMENT 8
coming from Chinese cellphone companies. Samsung is facing some instability in developing
Asian countries because their profit margin is being threatened by other domestic as well as
international players.
Entry and Exit barriers
This industry is mainly considered as high barrier to enter and low barrier to exit when
competition is so much tight. For entering in to new emerging market, Samsung is facing
difficulties related to the factors offered by host countries in terms of networking, distribution
channels and other set up. In this game of entry and exit where handover of business is
possible, Samsung has performed better as compared to other companies (Dudovskiy, 2017).
Samsung use step by step approach for entering in to new market and if market seems to be
unprofitable then exit the market without hesitation.
Power of consumer
In this factor, customer have large amount of options available in the market but at the same
time they cannot leave their high value products. In this situation, Samsung has introduce
product exchange strategy by which customer can buy new product in exchange of their old
products. This has helped the company in regaining trust of the customer base. But still,
Samsung is continuously facing threats from other companies which are offering similar kind
of product in low price.
Power of suppliers
In this element, Samsung is able to balance the power of suppliers due to availability of large
supplier base. But at the same time it does not means that Samsung can force suppliers to
reduce their price because, once supply chain is established, it becomes very difficult to
reshape it again (Pratap, 2017). In this situation, Samsung first explores the market and then
decides whether to enter in the particular market or not. Samsung tries to create win-win
situation for both suppliers as well as organization.
Threat of Substitutes

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Manufacture industry is considered as one of the profit making industry and is therefore
flooded with large varieties of substitutes which have generated difficulty for Samsung in the
business market. Therefore, Samsung must choose its strategy carefully in order to remain
sustainable in the market. In this situation, Samsung Company adopts differential pricing
strategies in order to attract its potential target segment by connecting products with income
pyramid and emotions. This helps Samsung to remain sustainable in this dynamic business
environment.

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