Strategic Management Report: Samsung's Internal & External Analysis

This report delves into the strategic management of Samsung, a leading multinational corporation in the consumer electronics sector. It begins by applying Porter's Five Forces model to analyze the competitive environment, followed by an examination of Samsung's internal situation using the VRIN framework, value chain analysis, and the BCG matrix to assess its competitive advantage. The report then constructs a strategic map to understand competitor positioning and utilizes a Decision Policy Matrix (DPM) to evaluate the firm's strategic business units. Core and distinctive competencies are elaborated upon, along with an exploration of feasible internationalization strategies. Finally, a business strategy is proposed for new products to gain a competitive edge. The report concludes with a summary of findings and a list of references.

Strategic Management

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Apply Porter Five Force model in respective organisation.............................................................3
Discuss VRIN, Value chain & BCG matrix as tool to access internal situation of company to
examine competitive advantage ......................................................................................................4
Design a strategic map to access competitors position in market ...................................................8
Construct a DPM to assess firms strategic business units ............................................................9
Elaborate on core competencies & distinctive competencies of firm ...........................................11
Examine two feasible internationalization strategies which can be adopted for entering into
foreign market................................................................................................................................12
Identify business strategy to be adapted for new product to gain competitive advantage.............13
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15
Books & Journal:...........................................................................................................................15
INTRODUCTION
In corporate world, business sector is becoming wider and broader which give rise to
competition. Strategic management is defined as process of setting objectives, goals, tactics with

aim that management get involved with these strategies (Bouncken, 2018). Main purpose of this
report is to understand the concept of strategic management within a organisation. Samsung a
multinational conglomerate headquartered in South Korea. The company is located globally and
deals consumer electronics, manufactures smart devices etc. It has number of competitors such as
Apple, Xiomi, Vivo, Oppo, One Plus etc. This report comprises of Porter Five force model, Value
Chain, VRIN & BCG matrix, strategic map, DPM, core competencies, organisational culture of
company, internationalization strategies and business strategy.
MAIN BODY
Apply Porter Five Force model in respective organisation
In business sector it is essential to be aware about competitive forces that can affects and
shape the business. It is important to focus on market & competitors so that organisational
objectives are achieved properly (De Moortel, 2018). Porter five forces is a model which is used by
enterprise to examine the competitive market. In relevance Samsung, they are being considered as
biggest innovative company and their new product which is Samsung galaxy S21 is going to be
introduce and also more new S series product line will be expanded company.
This framework includes five type of forces which affects the business environment & are
given as follows-

Power of buyers- In this competitive force, the power of buyer is moderate because
Samsung has wider variety of options from they can select the most appropriate one. It is often seen
that buyers target many companies with aim of after sale service. In relation with Samsung, they are
mostly dependent on customer's loyalty towards a brand. With boycott of product of China,
customers are moving towards Samsung products (Diharto, 2017).
Supplier's power- Suppliers are those which are provides resources to firm, make available
product in market. Without vendors, it is not possible for entity to carry out their product or service
in market properly. Power of supplier is more when there is more demand, smaller market etc. In
relation with chosen firm, they power of supplier is more because of more demand of product in
market. (Ferreira, 2017).
Threat of substitute products- It is another competitive force in which existing product is
being substitute by other products available for same features, specification, price etc. In case of
electronic industry, the heart of substitute is increasing at rapid scale. In reference with selected
entity, their products can be substitute by many other manufacturers like, One Plus, LG, etc.
Degree of rivalry- In this competitive force, intensity of competition in market is analysed.
The degree of rivalry of electronic industry is also enhancing such as Samsung has many
competitors like One Plus, Apple, Oppo, Vivo, Xiomi etc. The degree of rivalry increase prices of
products at higher level. Mostly Motorola & Dell are being considered as top most rivals of
Samsung which are rolling out electronic industry.
Threat of entry- Then arise competitive force of threat of new entry in which new
companies in market affects the business of company at wider scale. Due to rise of small, mediums
large manufacturers, it is difficult for new enterprise to survive in market. In relevance with
Samsung, threat of new entry is low because entering into a electronic sector is difficult because of
involvement of legal factors.
Discuss VRIN, Value chain & BCG matrix as tool to access internal situation of company to
examine competitive advantage
Value chain- It is framework or a tool which is used by enterprise to examine the internal &
external activities that can create competitive edge in global market. It includes two type of
activities primary and secondary activities which are described below-

Samsung primary activities-
Inbound logistics- These are those in which goods for making final product is being
carried out. In relation with Samsung, they globally have there suppliers, supply chain involves
vendors across the globe.
Operations- In this activity, it raw materials are being used for production of final products
in market. Further, value is added to product at this aspect & are mobile from production process.
Outbound logistics- This is also primary activity in which products are ready & are
available for distribution process. Distributing the products in market is known as outbound
logistics. In context with selected company, Samsung are being known for their quickly launching
their product in market due to their effective procedure of outbound logistics (Diharto, 2017).
Marketing & sales- In this activity, promotion and advertising of product is done by firm.
So, Samsung market their product through using of digital platforms, e-commerce sites, etc.
Service- It states the delivering of services to customers like after sale services, installation,
guidance etc. In case of chosen firm, they also provide additional services to their customers.
They too provide these services free of cost which is competitive advantage.
Support activities-

These are those activities which help firm to achieve competitive edge in market. These
activities are of different types which are given below-
Firm infrastructure- It specifies that every firm focuses on their legal, finance &
management structure through which they carry out their work. In relation with selected company,
they have appropriate form of structure which assist them in achieving of their goals effectively.
Human resource management- It is another support activity in which recruitment, hiring,
selection of deserving candidate is being processed. In electronic sector, employees are competitive
advantages which are focused by Samsung in most efficient way (Ferreira, 2017).
Technological development- It is also an support activity which is used as competitive
advantage by companies. In context of chosen firm, they are well known for delivering of their
innovative product every year which is because of adapting technology with advanced level.
Procurement- It is department in which main focus is on providing and using of raw
materials most appropriate way. Through thus, it is easy to ensure the quality of products or raw
materials up to the mark or not. In reference with selected company, they are carry out procurement
in correct way (Keerthi, 2019).
VRIN Analysis
It is framework which is utilized by entity to access internal capabilities of firm which
provide competitive advantage. It is time consuming procedure which required deep level of
knowledge and skills. It includes several types of components which are explained below-
SAMSUNG-
Resource or
capability
Value Rare Imitable
product
Non
substitutable
Impact on
competitive
advantage
Strong global
presence
Yes Yes Yes Yes Able to
achieve
sustainable
advantage
Semi
conductor
process
technology
Yes Yes Yes Yes Sustained
competitive
edge
Employee
selection &
retention
policies
Yes Yes Yes Yes Enhance the
productivity
level at global
level
Quality Yes Yes No No Improves their
production
processes.

Value
It is first component in which most valuable product is focused by enterprise which can
give competitive edge in market. In relation with selected firm, Samsung valuable products are semi
conductor technology and their globally recognized brand name.
Rare
In this, it states the product which is rare in nature & cannot be available at other location or
by any one. Rare products enhances the chance of gaining competitive edge in market. In context
with chosen enterprise, they too have rare products like quality of their product of smart devices is
rare.
Imitable-
This component depicts intensity up to which product can be copied or imitated by
competitors or other in market. Therefore, in context of selected corporation their products can be
also copied such as semi conductor technology, which is easily imitable by others (Kim Man,
2016).
Non- substitutable
This reflects whether the product will be substitute by other product or not. It is essential
have proper knowledge of competitive products which can substitute the product of a firm. In
viewpoint of selected entity, they products such as their retention policies, employee selection are
non-substitutable which cannot be replaced anyone (Krishnan, 2019).
BCG Matrix
It is a tool which is used by entity to examine strategy for products according to market
share & growth. It is divided into four quadrant which are described below-
Stars- It is fist quadrant in which products are at higher growth & high market share . In
relation with Samsung, mobile phones & tablets has strong position in market. For example-
Samsung galaxy S improve the brand value in market.

Question marks- This is stage in which products are still in development process. In this,
products has capability of growth but low market share. For example- Samsung printers have high
demand but are recognized in market (Navissi, 2017).
Dog- Then comes dog in which both market share as well as growth are at low level. In
reference with taken firm, Samsung TV & watch are unable to gain a competitive edge in market.
Cash cow- It is another quadrant in which products has higher growth & has capability to
produce more profits. They provide cash which are used to unpin the business for smooth
functioning. For example- Samsung home appliances, are being offered by company globally with
less innovative technology (Lukmandono, 2020).
Design a strategic map to access competitors position in market
Strategic map, is a map which is used for analysing competitive position in market. In,
market position and competitor position is known by developing map. So, it is further discussed
below-
Strategic analysis group of competitors position

High price- The competitors like Motorola and Apple, are placed at premium brand
positioning as because they deliver high end products to consumers. Accordingly, prices of
products are set by them at premium level (Pratama, 2019).
Low price- Then at next phase, in low prices competitors like XIOMI and Blackberry are
placed. They market their position at lower level because their provide affordable products to
consumers.
High specification- In this aspect, companies which provides products with high
specification are placed like One Plus, which provides higher specification with their each product.
Low specification- This category depicts those brand which provides low specification to
their end users like XIOMI, which provide low price and low specification to the consumers. Their
market position in this is also at low position (Schmid, 2018).
Construct a DPM to assess firms strategic business units
DPM which is also known as Decision Policy Matrix in which is adopted by entity to
identify the business portfolio in competitive market and examine surplus or deficit through
development of new promising business. Through competitive position within market of company;'s
division is accessed. This method includes two type of axis in the basis of measurement is done in
which in horizontal axis depicts the measure of profitability (industry attractiveness). The D.P.M.
Method also measure the position on basis of scoring points which reaches maximum of 12 points.
Through this strategic business units are within enterprise are examined.

Double or quit - It shows to invest in firm capability or to leave that segment. In this case,
Samsung printers can be categorised.
Divest- This depicts the to liquidate assets adopted in segments in sector as rapid company
can. In this Samsung TV can be categorised as this segment is at lower stage (Song, 2016).
Custodial- These are those business units in which no additional resources ere required to
be acquired firm. In context of given organisation, Printers can be put in business units.
Try harder- This is stage in which it specifies to provide more path ways through which
capability of segments can provide low generation of cash. For example- Samsung TV are being
put into these category.
Cash generators- These are those in which capability of segment is at higher level which
provides more cash to business. For example- In relevance with Samsung, smart devices like
mobiles can be put under this category (Unlu, 2020).
Phased withdrawal- It reflects the cash are moved for better potential. For example-
Samsung tablets are categorised in this segment.
Leader- In such type of quadrant, it depicts that resources are being focused for increasing
capability of sector. For example- Samsung laptops are leaders in this segment.
Growth leader- In this, it states that growing capability of segment by adapting of
adequate resources. For example- Samsung watches are growth leaders in this sector.

Elaborate on core competencies & distinctive competencies of firm
Core competency of firm is defined as process main strength of business such as new
product, or innovation which is used by them to achieved competitive advantage . For example- In
reference with Samsung their core competencies are discussed below-
Core competencies-
Creative employees- Samsung is combined with diverse range of employees who are able
to provide new views to company. This gives competitive advantage to their business in market.
New technology- It is also firm core competencies because they focus on customer driven &
bringing up new change in society. In relevance with chosen entity, in galaxy fold Z 2 and 1 they
are able to provide dual screen mobile.
Distinctive competency-
It is defined as competency in which a uniqueness is added to product to gain sustainable
advantage within a firm. Small business units aims to achieve advantage by focusing on distinctive
competencies to compete with competitors.
Fast delivery- This is being seen as Samsung distinctive competency in which products
are delivered prior to the delivery date of product.
Quality of product- This is also viewed as distinctive competency in which high quality of
products are distributed to customers in market. For example- Galaxy note 20, z fold 2, galaxy s20
etc.
Analyse organizational culture of company
According to Handy's theory, culture of a company depicts the way through all activities
and functions are being processed. IN relation with there are four type of organisational culture of
Samsung which are discussed below-

Task culture- It is type of culture in which different and difficult tasks are allotted to
employees working in firm. For example- In Samsung marketing department employees gets task
of generating sales and increasing sales revenue (De Moortel, 2018).
Role culture- It is type of culture where every subordinates is being allotted with different
roles as well as responsibilities depending upon their level of skills & knowledge. For example-
marketing manager main role is to manage & handle team members to expand the probability of
firm by implementing strategies.
Power culture- In this type, decisions and discussions are made by small number of people
or individual who make quick decisions within firm without consulting to maximum workforce. In
reference with selected firm, decision are mostly made by leaders or managers.
Person culture- This is a culture in which company is relying on knowledge as well as
skills of a person . For example- In relation with selected enterprise, people like programmers,
technicians, has extensible knowledge in their field & they are make decisions accordingly. Thus,
Samsung is dependent upon technological department employees.
Examine two feasible internationalization strategies which can be adopted for entering into foreign
market
Internationalization strategies are essential to be adopted to enter into a foreign market so
that business is expanded at global level. It is important to focus on these strategies so that
activities & operations are carried out at international level. Moreover, manager of firm need to
ensure that appropriate form of tactics are adapted. There are two types of internationalization
strategies which are adopted by Samsung & are explained below-
Foreign Direct investment- It is a type of mode of internationalization strategy in which a
adequate amount of investment is done by entity to expand their business at international market.
In relation with Samsung they are using this strategy for entering into overseas market. FDI is the
mainly focused by enterprise because they have large market share & growth of product according
to which they are able to expand their purchasing & selling process (Bouncken, 2018).
Direct exporting- It is another mode of entry which is adopted by chosen entity. It is being
considered as fast way of entering into a particular market. Through this they are able to promote &
advertise their brand at international level. It also strengthen the network distribution channel of
company. Thus,with help of direct exporting enterprise products are distributed globally.
Thus, above explained two feasible international strategies are adapted by given enterprise
through which it is easy to make decisions in business.

Identify business strategy to be adapted for new product to gain competitive advantage
Business strategy is defined as set of actions of tactics in a written document to gain
competitive advantage. In context with selected company, they use business strategies which help
them to carry out their work in proper manner. So, several type of strategies are discussed below-
Low cost- It is business strategy in which product is being introduced at low price within a
competitive market. Samsung positioned themselves as premium brand and as their new products
are relatively of higher & then their price gradually decreases. They do not use this this business
strategy in their organisation.
Hybrid strategy- In this, both low cost & differentiation strategy are being adopted
organisation. In this tactic, it is adapted by Samsung as they they focus on both price or of
product as well as uniqueness of a product. Products are provided at low cost but with
differentiation specification (Diharto, 2017).
Differentiation- This is another one in which new products are introduced with something
unique. Main aim of adopting this strategy is to compete in this competitive market. In viewpoint
of chosen enterprise they products are different from others but this strategy is adapted with lesser
variant.
Therefore, discussed matter shows that hybrid strategy is majorly adopted by Samsung in
their business. By using it, they are able to focus on both type of aspects which is beneficial for
business. Growth & development (Ferreira, 2017).

CONCLUSION
After a brief analysis of above report, it is examined that strategic management is wider
broader concept. It is important to use this in business sector so that goals and objectives are
achieved properly. So, in this report several topics has been includes which are models related to
BCG, VRIN, DPM, Porter five forces. Then, discussions has been made about core competencies,
internationalization strategies and business strategy. Therefore, it is evaluated that by appropriately
focusing on strategies of business, it is easier to accomplish goals within a period of time.

REFERENCES
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