Strategic Management Report: Comparing Samsung and Sony Strategies

This report provides a comparative analysis of the strategic management approaches employed by Samsung and Sony. It begins with an introduction to strategic management and its importance in achieving business objectives. The report then delves into the background of Samsung, outlining its product offerings and global presence, followed by an examination of its strategic solutions, including cost leadership, differentiation, and focus strategies. A critical evaluation assesses the effectiveness of these strategies for Samsung. Similarly, the report explores the background of Sony, detailing its diverse portfolio and market reach, before analyzing its strategic solutions based on Porter's generic model, specifically cost leadership and differentiation. A critical evaluation of Sony's strategies is also provided. The conclusion emphasizes the significance of strategic management and the applicability of Porter's model in enhancing sustainability and profitability. References to relevant academic sources are included.

STRATEGIC
MANAGEMENT

 Introduction
 Background of Samsung
 Strategic solutions
 Critical evaluation
 Background of Sony
 Strategic solution
 Critical evaluation
 Conclusion
 References
Table of Content

Introduction
 Strategic management refers to an
effective term that is helpful in
setting the objectives and
analyzing the competition in the
marketplace so that manager of a
firm can evaluate the best strategy
and enhance their profit margin.

Background of Samsung
 Samsung is a well known electronic
company that is headquartered in
South Korea. It provide wide varieties
of merchandise such as television,
washing machines, refrigerator,
mobile phones and so on. The number
of employees working in this firm are
approximately 3,09,630 across
worldwide.

 This strategy is very helpful because it helps in gaining the competitive
advantage in the market. In this Samsung manager can analyse the best
strategy so that they will enhance their profit margin. it can be shown
below.
 Cost leadership – by using this strategy price sensitive people are easily
attracted. In this Samsung could use this strategy by providing various
offers and discounts to their loyal customers so that large number of
customer get attracted and company will earn high profits.
Strategic solutions

 Differentiation – In this strategy business may offers the unique and
innovative products that is different from the competitors so that Samsung
can enhance their profit market by maximizing the sales.
 Focus – It include two strategy i.e. cost leadership and differentiation
focus in this Samsung can offer low price products to maximize sales and
offers innovative goods so that customer can buy the product without
hesitation.
Continue…

 From the above showing strategic solution Samsung should
adopts the cost leadership strategy because they offers high
price products due to which customers can hesitate to buy
their products. this strategy helps in enhancing the sales and
attracting more new customers that can buy their products
without move towards the other company.
Critical evaluation

Background of Sony
 Sony is a largest multinational Japanese
company that includes varieties of
portfolio i.e. TV, speakers, headphones,
watches etc. and contains large revenues
including $ 80 billion. It served their
products in the worldwide. The manger of
company can expand their sales and
profits for this they can use Porter’s
generic model that can be shown
underneath.

Porter’s generic model -It can include three strategies that helps the
manager to enhance their profit margin and sales in the long term
sustainability it can be shown below.
 Cost leadership- It define the strategy related to lower price for the
products and services in this Sony can offers their products on low price so
that they can make the large customer base.
 Differentiation- It defines that strategy that helps the company to
differentiate the products from the competitors so that Sony can expand
their market share in the technological market.
Strategic solution

 By analyzing the above strategic solution it is critically
evaluated that Sony can adopts the Differentiation strategy so
that they can set their own price and attracts the large base of
customers it will enhance the profit margin and sales of the
firm.
Critical evaluation

 From the above report it is to be concluded that strategic management is a
prominent term that helps the company to enhance their sustainability and
profit margin by analyzing and following the effective strategy. In this
Porter’s generic model helps in providing the best strategic solutions to the
different companies so that they stay in the market for a longer time
period.
CONCLUSION

 Schilling, M.A. and Shankar, R., 2019. Strategic management of
technological innovation. McGraw-Hill Education.
 Wicker, P., Soebbing, B.P., Feiler, S. and Breuer, C., 2015. The effect of
Porter’s generic strategies on organisational problems of non-profit sports
clubs. European Journal for Sport and Society. 12(3). pp.281-307.
 Hales, G. and Mclarney, C., 2017. Uber's Competitive Advantage vis-à-vis
Porter's Generic Strategies. IUP Journal of Management Research. 16(4).
 Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic
management of health care organizations. John Wiley & Sons.
References